Skip to main content
Ministry of Finance, Planning and Economic DevelopmentDoing Business Portal
All reforms

High cost and unreliable supply of power

Prioritise procurement of grid equipment to modernise electricity distribution

In progress
High priority
Status confirmed 1 January 2026

Implementation is underway.

Where this stands

Distribution transferred to UEDCL and tariffs reduced; the equipment replacement programme itself is outstanding.

Why this reform was agreed

Despite reforms, power tariffs remain relatively high and reliability is poor, forcing processors to rely on expensive fuel alternatives such as generators. Unreliable supply is caused by old and dilapidated equipment such as transformers, some of it beyond repair and requiring full replacement.

Ongoing and planned interventions

Following the UEDCL takeover of electricity distribution, the cost of power has fallen by 14%, saving consumers approximately Shs 250 billion annually. The cost of connection has been lowered from over Shs 700,000 to Shs 30,000 through the rural electrification programme, and tariffs for large industries reduced to 5 US cents per kWh off peak.

Progress updates

No progress updates recorded yet

Updates are published as the lead institution confirms movement on this action.