Auditor General raises red flags over power stations
Overview
New findings from the Auditor General’s 2025 report highlight challenges in Uganda’s hydropower sector, including underperforming plants, transmission bottlenecks, and missed revenue targets. While the Nalubaale-Kiira complex exceeded expectations, newer plants like Karuma and Isimba operated at just 30% and 72% of their declared capacities, respectively, raising concerns about loan repayments and alignment with the Vision 2040 electricity expansion goals.
Idle transformers, SCADA limitations, and other transmission constraints have resulted in billions in deemed energy payments for power that cannot be transmitted. Analysts warn that projects such as Karuma risk becoming “monuments of debt” if the Defects Liability Period expires before proper stress-testing.
Experts recommend focusing on maintenance, improved coordination between generation and transmission, growing industrial demand, and transparent governance to stabilize operations and ensure financial viability.