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KACITA Demands End to Bulk Power Metering in Arcades, Accuses Landlords of Exploiting Traders
The Kampala City Traders Association (KACITA) has issued a strong call to the Uganda Electricity Distribution Company Limited (UEDCL) to scrap bulk power metering in commercial buildings, particularly arcades, arguing that the system is being abused by landlords to exploit tenants.
The demand was made during a high-level meeting convened by the Economic Policy Research Centre (EPRC) on Thursday to present the Uganda Business Climate Index (UBCI) report for the second quarter of 2025.
Speaking at the event, KACITA spokesperson Issa Ssekito said landlords are inflating electricity costs—in some cases doubling or even tripling them—under the current bulk metering system. He added that traders are left with no control over their power usage and face the risk of eviction if they challenge the status quo.
“This system has become a tool for extortion,” Ssekito remarked. “Each trader deserves their own meter to pay for only what they use. We raised this issue with UMEME before, and now we are calling on UEDCL to act where their predecessor failed.”
Responding to the concerns, UEDCL Managing Director Paul Mwesigwa acknowledged the challenge but noted that power theft remains a significant hindrance to rolling out individual meters in shared buildings. “In an ideal world, every shop would have its own meter,” Mwesigwa said. “But without an effective monitoring system, the installation of individual meters can actually worsen theft. We are now working with meter manufacturers to introduce smart technology that will detect illegal tapping from the main supply.”
Until this solution is fully developed and deployed, Mwesigwa said the company has limited capacity to intervene directly in disputes between landlords and tenants over power billing.
Findings from the latest UBCI survey—based on interviews with 1,152 businesses across Uganda—indicate that the ongoing transition from UMEME to UEDCL has left a trail of uncertainty and operational strain for many enterprises.
According to Rehema Kahunde, a researcher in EPRC’s macroeconomics department, four in every ten businesses reported that the change in power distribution had negatively affected their operations.
Among the top complaints: 74% reported more frequent power outages since UEDCL took over on April 1, 2025. Businesses, especially in manufacturing and service sectors, said interruptions disrupted production. A perceived drop in value—businesses claim to be getting fewer electricity units for the same payment compared to the pre-transition period
However, Mwesigwa contested the cost-related findings, explaining that electricity tariffs have reduced, but tax deductions—charged once a month—may create the impression of fewer units depending on when a consumer makes a purchase.
The clash between traders and landlords over electricity charges, coupled with increased outages and confusion about tariffs, has amplified calls for reform in power distribution policies, especially in urban commercial spaces.
KACITA is urging UEDCL and the Ministry of Energy to take urgent steps to enforce transparency in billing and ensure that the transition to government-managed power distribution results in fairer access, better service, and affordable electricity for all Ugandan businesses.
As Uganda moves to stabilise its energy sector post-UMEME, collaboration between stakeholders—including traders, landlords, regulators, and suppliers—will be critical in building a business environment that is both secure and sustainable.
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