Umeme share sheds 85% value ahead of loss announcement

What the report says

Umeme Limited’s share price has fallen sharply since the company handed its electricity distribution concession back to the Ugandan government in March 2025, according to The Independent Uganda. The report said the stock has lost about 85% of its value and has been among the weakest performers on both the Uganda Securities Exchange and the Nairobi Securities Exchange, where the company is cross-listed.

The decline has accelerated in 2026, with shares reportedly dropping from 242 Ugandan shillings at the start of the year to 63 shillings in recent trading. Before the concession ended on March 31, 2025, the stock traded at 415 shillings. The company has also warned shareholders that it expects another loss for the first half of 2026, attributing that outlook to the end of its core business after the concession expired.

The Independent said Umeme now has no operating revenue and is relying on an arbitration process to pursue additional compensation from the government. The dispute concerns how much of the company’s investment in Uganda’s electricity network had not yet been recovered when the concession ended. The government paid the amount based on the Auditor General’s valuation, while Umeme is seeking more through international arbitration.

The article said uncertainty over the compensation process, the suspension of dividends and speculation around the company’s future have kept pressure on the stock. It also noted that trading in the shares remained active as investors continued to exit positions.