The Uganda Electricity Transmission Company Limited (UETCL) is facing 136 court cases carrying a combined contingent liability of Shs777 billion, raising concerns among Members of Parliament over the potential impact on public finances and electricity service delivery.
The matter came to light on Thursday, September 3, 2026, when officials from UETCL appeared before the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) to respond to queries raised in the Auditor General’s report for the financial year 2024/2025.
MPs were told that some of the cases stem from delayed compensation of project-affected persons, with outstanding compensation amounting to about Shs22 billion. UETCL also owes another Shs30 billion in relation to a substation in Tororo District.
More than Shs500 billion of the contingent liability relates to a case filed by Umeme Limited, which is currently before a court in London.
COSASE Chairperson Hon. Muwada Nkunyingi expressed concern that many of the disputes could have been avoided, pointing to weaknesses in land acquisition, compensation, contract administration and project management.
Nkunyingi also questioned UETCL’s procurement processes after the committee learnt that the company’s contracts committee had not been meeting regularly due to the absence of some members, including one who was away on study leave.
“We asked who was giving out the contracts and whether one person sat and decided who should be awarded a contract,” Nkunyingi said.
He further cited findings from the Auditor General’s review of selected contracts, which pointed to possible collusion between some UETCL employees and contractors through the alleged leakage of confidential procurement information.
The committee also questioned why some UETCL contracts provide for disputes to be settled outside Uganda, with Nkunyingi saying MPs would scrutinise the agreements to establish how such clauses were approved.
Budadiri East County MP Julius Nakiyi questioned the effectiveness of UETCL’s legal department, particularly whether management had been adequately advised against decisions that could expose the company to costly litigation.
UETCL Company Secretary Stella Ladona explained that some cases arise when project-affected persons reject compensation amounts determined in accordance with the Chief Government Valuer’s guidelines.
UETCL Chief Executive Officer Eng. Richard Matsiko, meanwhile, said the company had received sufficient funds to compensate approximately 8,000 project-affected persons affected by the 400kV Karuma–Tororo transmission line.
Matsiko said UETCL field officers are currently conducting valuation and assessment, adding that those who accept the compensation offers are expected to receive payment within six months.
The committee is expected to further scrutinise UETCL’s contracts, procurement processes and project management practices to establish the causes of the disputes and measures needed to reduce the company’s exposure to costly litigation.
