Kampala: The Uganda Electricity Transmission Company Limited (UETCL) is currently entangled in 136 court cases, posing a potential liability of Shs777 billion. This development has sparked concern among Members of Parliament (MPs) regarding the impact on public finances and the delivery of electricity services.
According to African Press Organization, the majority of these legal disputes stem from delayed payments to project-affected persons, amounting to Shs22 billion, alongside a Shs30 billion debt owed to a substation in Tororo District. Notably, over Shs500 billion of the liability is linked to a case filed by Umeme Limited, presently under deliberation in a London court.
The issue surfaced during a meeting of the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) where UETCL officials were questioned about anomalies highlighted in the Auditor General's report for the 2024/2025 financial year. The meeting, held on Thursday, 03 September 2026, was chaired by Hon. Muwada Nkunyingi.
Hon. Nkunyingi noted that many disputes arose from flaws in land acquisition, compensation, contract administration, and project management. He expressed skepticism over UETCL's procurement processes, pointing out the irregularity of the contracts committee meetings due to absenteeism and other commitments of its members. Concerns were also raised about potential collusion within UETCL's ranks, as some employees were allegedly leaking confidential procurement information.
Furthermore, Nkunyingi questioned why certain contractual agreements necessitated that disputes be resolved outside Uganda, signaling the committee's intent to scrutinize these clauses and ascertain their approval processes. "We observed that there are agreements which do not require matters to be settled in our courts of law. Some cases have to be settled outside the country. We want to look into all the contracts and find out how they were reached," Nkunyingi stated.
Hon. Julius Nakiyi, representing Budadiri East County, criticized UETCL's legal department for its apparent failure to advise management against decisions that led to expensive litigation. Nakiyi emphasized the need for clarity on the challenges faced and improvements in project management.
Responding to these concerns, UETCL Company Secretary Stella Ladona clarified that disputes often arise when project-affected persons (PAPs) reject compensation amounts calculated according to the Chief Government Valuer's guidelines. UETCL CEO Eng. Richard Matsiko assured that adequate funds had been secured to compensate around 8,000 PAPs impacted by the 400 KV Karuma-Tororo transmission line. "We have our field officers on the ground conducting valuation and assessment. Within six months, those who accept the compensation offers will be paid," Matsiko assured.