Power distributor, Umeme Limited, has issued a profit warning to its shareholders after recording a KES 6 billion loss for the period ended June 30, 2025, primarily driven by the natural end of the 20-year concession agreement with the Ugandan government which led to the termination of revenue generation.
Revenue slumped by 56.3% to KES 18.1 billion, from KES 41.4 billion in the same period last year. Similarly, gross profit plunged by 76.7% to KES 3.4 billion primarily due to reduced margins, fewer operational months, and a lag in regulatory income recovery.
Umeme recorded a foreign exchange loss of KES 305 million, compared to a foreign exchange gain of KES 207 million in H1 2024. Operating costs eased to KES 3.6 billion from KES 5.3 billion in the same period last year. An amortization expense of KES 4.8 billion was recognised during the period, reflecting the adjustment of intangible assets to their current valuation.
The electricity distributor recorded a net loss of KES 6 billion compared to a KES 470 million profit in a similar period last year.
Umeme’s asset base contracted by 73.7% to KES 21.2 billion, while Total equity shrank 91.4% to KES 2.5 billion. Net cash flows from investing activities surged to KES 14.7 billion, underpinned by a buyout of $118 million by the government of Uganda. Cash balance closed at KES 16.8 billion. Umeme’s board of directors declared an interim dividend of KES 8 per ordinary share that was paid to shareholders on 31 July 2025.
Umeme Future Outlook
The electricity supplier’s Board of Directors said that the management is dedicated to amicably resolving the dispute with the government on the firm’s pending buyout amount claims. In addition to trying to create and seize new business prospects, Umeme’s management continues to run the company sensibly in accordance with its changing environment.
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