RETIRING BITATURE ON THE SPOT AS UMEME FREEZES DIVIDENDS! Shareholders Face Tough AGM After Sh223.6bn Loss…But Company Rules Out Winding Up, Plots Energy Comeback
Business mogul Patrick Bitature is set to face shareholders for another term on the Umeme Limited board as the electricity distributor heads into a high-stakes Annual General Meeting (AGM) with no final dividend on the table after posting another massive financial loss.
The company has officially announced that Bitature, who is retiring by rotation in line with the company’s Articles of Association, will seek re-election at the AGM slated for August 21, 2026, at Mestil Hotel.
But the biggest blow for investors is the Board’s decision to freeze the final dividend for 2025, meaning shareholders will not receive any additional payout beyond the interim dividend already paid last year. The Board will ask shareholders to formally approve the decision during the meeting.
The dividend freeze comes after Umeme reported a staggering Sh223.6 billion net loss for the year ended December 31, 2025, as the company’s electricity distribution concession ended on March 31, 2025, leaving it with only three months of operating revenue compared to a full financial year in 2024. Revenue plunged from over Sh2.3 trillion in 2024 to Sh530 billion in 2025.
Despite the poor financial performance, the company says shareholders already benefited from an interim dividend of Sh222 per ordinary share, which was declared after Umeme received a partial government buyout payment of US$126.8 million (about Sh457.3 billion) in 2025. However, directors insist no further dividend should be declared until the company’s financial position improves.
The AGM is expected to attract keen attention from investors because Umeme is now operating in a completely different environment following the handover of the national electricity distribution network to Uganda Electricity Distribution Company Limited (UEDCL).
The company maintains that government has not fully paid the Buy Out Amount due under the concession agreement and has already commenced arbitration proceedings before the London Court of International Arbitration to recover what it says is the outstanding balance. Management says it remains focused on protecting shareholders’ interests through both arbitration and negotiations with government.
Shareholders will also vote on the reappointment of Ernst & Young as external auditors for 2026 while authorising the Board to determine their remuneration.
Although Umeme has exited electricity distribution, directors say the company is not winding up. Instead, it has streamlined operations and is exploring fresh investment opportunities in the energy sector using the expertise accumulated during its 20-year concession. Shareholders are expected to receive an update on these potential ventures during the AGM before any binding commitments are made.
The company says that during its two decades of operation it invested US$856 million in Uganda’s electricity distribution network, increased customer connections from 290,000 to 2.2 million, cut energy losses from 38% to 16%, and significantly improved revenue collection and network reliability before handing over operations to government.
GOT A HOT STORY? LET US KNOW!
Got breaking news, explosive secrets, or hard evidence?
Email us: redpeppertips@gmail.com
We accept tips, documents, videos, photos, and recordings—the more evidence you have, the better.
CONFIDENTIALITY IS OUR TOP PRIORITY. SOURCES ARE ALWAYS PROTECTED!
About Post Author
