- Umeme Ltd. shares resumed trading at the Nairobi Securities Exchange on Friday after being suspended since March 31, 2025
- The share price dropped by 5% during the day as investors rushed to offload their holdings amid ongoing uncertainty over a buyout deal with the Ugandan government
- The NSE had suspended the shares due to regulatory issues following the expiration of Umeme’s 20-year electricity distribution concession, which ended on March 31, 2025
Elijah Ntongai, a journalist at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan and global trends.
Uganda’s Umeme Ltd. stocks were back on the trading floor at the Nairobi Securities Exchange on Friday.
Source: UGC
Umeme’s share prices plumment 5% on the day as investers seek to offload their shares due to the uncerteinties surrounding the buyout by the Ugandan government.
The company’s shares had been suspended since March 31 and closed the trading session at KSh 15.05.
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Why did Nairobi suspend Umeme Ltd?
As reported earlier on TUKO.co.ke, the NSE issued a statement explaining that the Umeme Ltd. shares would remain suspended until May 12, 2025, or further notice, due to ongoing regulatory processes tied to the end of Umeme’s 20-year electricity distribution concession with the Ugandan government.
The deal between Umeme and the Ugandan government expired on March 31, 2025 and the Uganda Electricity Distribution Company Limited (UEDCL) took over electricity distribution on April 1, 2025, aiming to address high tariffs and enhance service delivery.
However, Umeme and the government locked in a dispute over the valuation of the buyout amount for unrecovered capital investments; consequently, Umeme declared a formal dispute on April 11, 2025.
The continued uncertainty over the buyout amount as well as the suspension of the shares trading has impacted investor confidence leading to a drop in the company’s share prices.
Source: TUKO.co.ke
