Kampala, Uganda | THE INDEPENDENT — The Kampala City Traders Association (KACITA) is urging the Uganda Electricity Distribution Company Limited (UEDCL) to eliminate the use of bulk metering systems in Kampala’s commercial arcades, claiming that landlords are exploiting the system to overcharge tenants.
During a presentation of the Uganda Business Climate Index (UBCI) for Q2, hosted by the Economic Policy Research Centre (EPRC), KACITA spokesperson Issa Ssekito criticizes the continued use of bulk metering. He notes that despite raising concerns with UEDCL’s predecessor, UMEME, the issue remains unresolved.
“Bulk metering causes serious discord between tenants and landlords. Some building owners double or even triple the actual cost of electricity, inflating business expenses and threatening the survival of small traders,” Ssekito says. “Every shop should have its own power meter to ensure transparency and fairness in billing.”
In response, UEDCL Managing Director Paul Mwesigwa acknowledges the concerns but points to the ongoing challenge of power theft as a major obstacle to implementing widespread individual metering in commercial buildings.
“Distributing individual meters without a robust monitoring system creates vulnerabilities,” he explains. “We are currently working with a meter manufacturer to develop smart technology that can detect illegal connections from central metering points. Until that solution is in place, there is little we can do to intervene directly.”
The debate emerges as business owners continue to express discontent following the April 1, 2025, transition of power distribution responsibilities from UMEME to UEDCL.
According to the EPRC’s UBCI survey—conducted with 1,152 business owners across Uganda—at least 40% report negative effects from the transition. Among the top concerns is the increased frequency of power outages, cited by 74% of respondents, particularly in manufacturing and service sectors that rely heavily on consistent energy supply.
Businesses also report a perceived increase in electricity costs, saying they receive fewer units for the same amount of money compared to before the UEDCL takeover.
However, Mwesigwa disputes these claims, stating that electricity tariffs have actually dropped. He explains that discrepancies in unit allocations may result from when customers make their purchases, due to monthly tax deductions applied on initial payments.
“While prices have gone down, customers may receive fewer units depending on their timing of purchase. It’s a billing structure issue, not a price hike,” he says.
As traders continue to press for reform, the issue of electricity distribution, cost, and transparency remains a key concern for Uganda’s urban business community—especially in densely populated commercial hubs like Kampala.