By Silvia Nyambura
Power utility company Umeme recorded a sluggish demand for electricity at 4.4% in 2016 compared to 8% in 2015. It also registered a drop in profits from Ushs 106 billion to Ushs 100 billion in the period under review. This was attributed to the uncertainty that came with the 2016 presidential elections and the high commercial rates.
Speaking at the company’s Annual General Meeting (AGM) last week, Umeme Managing Director Selestino Babungi said, “The manufacturing sector which is made up of heavy consumers of electricity grew by less than 1% hence the slowdown in industrial activity. This is because we had elections. So, major industrial players withheld their capital investments or production schedules. In addition, we recognize the impact of global economic and political trends on the country macro-economics, especially the regional economic effects from the war in South Sudan.
