EXCLUSIVE: NSSF To Bag Shs1.3bn From Umeme Shares

pilule geneva;”>The electricity distributor announced a Shs57 bn shilling profit after tax at their annual general meeting held at Serena hotel on Thursday.

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cost geneva;”>NSSF recently bought shares worth Shs 52 bn in an Initial Public Offering by Umeme amidst sharp criticism and protests from its customers – workers.

The workers, through their umbrella bodies; Central Organisation of Free Trade Unions – Uganda (COFTU) and National Organisation of Trade Unions (NOTU), argued that the investment which “puts savers’ money at risk was entered into without consent of the board and Solicitor General.”

The groups further launched a complaint to the Minister of Finance, Maria Kiwanuka, seeking her intervention.


“We are thus compelled to seek remedial measures to guarantee the safety of workers’ money and to avoid reoccurrence of the same considering that a similar conduct led to a loss of colossal sums of money in the Nsimbe project,” read the letter to Kiwanuka, dated February 11 and signed by the secretary general of the two unions, Mr Mazamiru Kibeedi.

However, sources say workers are so far the main beneficiaries in the Umeme investment.

“As for NSSF this has been one of their better investment, maybe it is the Richard Byarugaba’s (Managing Director) magic working,” a reliable source told this website on Friday.

Sources further told Chimpreports the Parliament Pension Fund will bag Shs21.3mn at the going price of Shs315.

“They (MPs) would make a whooping Shs56m profit on what they spent in November last year,” the source added.

Interestingly, several MPs last year warned the public against buying shares in Umeme.

Umeme publicist Henry Rugambwa was not readily available for comment.

The Umeme Initial Public Offering (IPO), which closed on November 7, attracted over 35 percent over-subscription by enthusiastic investors.

Patrick Mweheire, Stanbic Head of Corporate and Investment Banking said then: “The Ugandan retail segment, Institutional investors from Uganda and the rest of East Africa and Foreign Institutions applied for shares worth more than the Ushs171 billion on offer.”

At the time, Umeme Managing Director, Charles Chapman, said funds raised from the IPO would be used to reduce the company’s interest-bearing debt and enable Umeme to secure additional commercial debt over the next few years, to help finance its expansion strategy.

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