The Final Bill : Umeme Vs. Uganda

When Umeme secured a 20-year concession to run Uganda’s deteriorating national electricity distribution network its tasks included modernizing the grid. But now as the state takes back that role, a conflict is brewing…

Good evening! It's Brian from The Kenyan Wall Street. This and more business stories in today's edition of ‘The Daily Brief’

ANALYSIS: Uganda Pulls the Plug On Umeme—Now What?

After 20 years of running Uganda’s power grid, Umeme has packed up—and sent the government a $234 million goodbye bill. But the state only paid US$118 million, claiming that’s all Umeme’s really owed. Now the two sides are heading for a high-voltage legal showdown in London.

It’s not just boardroom drama—real money is involved. With trading frozen at the Ugandan and Kenyan bourses, big shareholders like Uganda’s National Social Security Fund are holding their breath. Depending on how this plays out, they’ll either get a nice payout or have to swallow a painful loss.

So who’s running the lights now? That’s UEDCL, the state-owned firm that’s taken over operations, staff and all. The government says service won’t skip a beat, but whether rationalising the grid will deliver cheaper power—or scare off future investors—is the big question. I'll bet on the latter.

Our Financial Analyst — Harry Njuguna — explains in detail »»»»»

Today's Poll

Markets at a Glance

ADIEU : Tullow Oil Divests Stake in Kenya’s Petroleum Ambition

Tullow Oil has officially exited Kenya, selling its entire stake to Gulf Energy for at least $120 million after years of stalled progress and regulatory limbo. The move follows the withdrawal of key partners and the prolonged delay of Kenya’s Field Development Plan, now expected by June 2025. Gulf Energy, a regional petroleum heavyweight, will take over the stalled project, potentially reviving Kenya’s elusive oil dreams. Tullow, having already written off over US$145 million, is using the sale proceeds to streamline its balance sheet and double down on West African assets. Ironically, Kenya’s oil ambitions might now depend on whether Gulf can navigate the same bureaucratic maze that left Tullow running on empty. Here are the details »»»»»

EMBRACE REALISM : Why Experts Want the State to Consider Revenue-Spending Alignment

Ernst & Young has pointed fingers at Kenya’s overambitious budgets for the KRA’s consistent failure to hit revenue targets. In response, the Treasury has trimmed its revenue projection to KSh 2.835 trillion for the upcoming fiscal year. Kenya’s fiscal deficit is now set at KSh 831 billion, highlighting ongoing spending pressures. The economy is stabilizing, but high inflation and governance hurdles still cast long shadows. In banking, rising non-performing loans suggest trouble brewing beneath the surface. And as for the taxman—he can’t squeeze juice from stones. Here is the full article»»»»»

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📌 News Desk

Safaricom Faces Fintech in IP Battle…Again…

Safaricom PLC is facing renewed legal pressure after the High Court declined to strike out a cross-appeal filed by fintech firm Kibo Capital Group in an ongoing intellectual property dispute over the M-PESA Bill Manager. Here is the center of the conflict »»»»»»

CBEX : The Crypto Ponzi Scheme Where Nigerians, Kenyans Lost Money

The collapse of CBEX, a fast-growing digital Ponzi scheme disguised as an investment platform operating across Africa, has seen investors lose over US$840 million, according to Nigerian media reports. Most of the crypto scam’s victims were Nigerians and Kenyans who were entangled in a web of deceit and faux promises of lucrative financial benefits, only to realize that their wallets were empty. Here are the details»»»»»

The June Horizon : Arising Budget Concerns…

In its analysis ahead of the budget, the Institute of Public Finance (IPF) notes several systemic gaps, including low development budget absorption, a growing stock of pending bills, now totaling KSh 706 billion, and continued overlaps and duplications in government functions across multiple sectors. The Institute of Public Finance (IPF) is pushing for the urgent strengthening of linkages between budget planning and execution ahead of June tabling of the 2025/26 National Budget. Our Senior Reporter — Fred Obura explains here »»»»»

📌 In-depth Report 

Sudan Conflict Enters Third Year With No End in Sight

On April 15th, the Sudan conflict entered its third year since fighting broke out between the Sudanese Army (SA) and the Rapid Support Forces (RSF), in what has become one of the worst ongoing conflicts in the world with a humanitarian crisis “of industrial proportions.” Our Editor-in-chief, Morris Kiruga dissects the events that have defined the conflict and its grim outlook in this article »»»»»

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Yesterday's Poll Results

Do you believe the EACC will successfully bring those involved in the ERP scandal to justice?

🟨⬜️⬜️⬜️⬜️⬜️ Yes (26%)

🟩🟩🟩🟩🟩🟩 No (74%)