Mr Mwesigwa, who had led the company since July 2019, was reportedly relieved of his duties on Friday through a formal letter from the minister.
The Ministry of Energy and Mineral Development has dismissed the Board Chairperson of the Uganda Electricity Distribution Company Ltd (UEDCL), Lydia Ochieng Obbo, and placed the company’s Managing Director, Paul Mwesigwa, on forced leave following concerns over declining performance.
In a statement issued Saturday, Energy Minister Ruth Nankabirwa confirmed the shake-up, describing it as part of a broader review of the company’s management and operations.
“The government has undertaken a review of the management at UEDCL. The services of the chairperson of the Board have been terminated, and the Managing Director has been placed on forced leave to allow for a comprehensive review of UEDCL’s management and operations,” Nankabirwa said.
She added that interim leadership has been installed to ensure continuity, with an acting board chairperson and managing director appointed to oversee operations until substantive replacements are named.
“The Ministry emphasises that these actions are part of routine governance and oversight procedures aimed at strengthening institutional performance, accountability, and service delivery within the energy sector,” she noted.
However, sources familiar with the matter suggest the decisions were triggered by worsening electricity distribution performance, particularly a surge in energy losses since UEDCL assumed control of the distribution network from Umeme Ltd.
Mr Mwesigwa, who had led the company since July 2019, was reportedly relieved of his duties on Friday through a formal letter from the minister. UEDCL spokesperson Jonan Kiiza confirmed the leadership changes but declined to provide further details.
Insiders indicate that energy losses rose from 15 percent at the time of transition to approximately 19 percent under UEDCL’s management—well above the sector’s annual target of 13.65 percent. A recent performance report shows that the company recorded losses of 18.11 percent in the first quarter of 2026, despite growing electricity demand and customer connections.
Between April 2025 and March 2026, national electricity demand increased by 28.5 percent, while the number of active customers rose by 9 percent. Energy purchases also climbed steadily, reflecting increased consumption across the grid.
Despite this growth, critics argue that inadequate investment in aging distribution infrastructure has undermined performance. One source within the Energy Ministry pointed to overloaded substations, frequent system breakdowns, and widespread network instability as key contributors to the rising losses.
“How can you not have energy losses when the network you inherited is in such a poor state?” the source said. “There are breakdowns everywhere, substations are full and overloaded, and there is constant tripping.”
The source further warned that without urgent improvements in planning and infrastructure investment by both the ministry and the Electricity Regulatory Authority, the sector risks slipping into a deeper crisis.
The interim management is expected to steer UEDCL as the government completes its review and charts a path forward for the country’s electricity distribution subsector.