The Court of Appeal has ordered UMEME Limited to pay Shs100 million in damages to Edroch Plastics Company Limited for unlawfully disconnecting its electricity supply and failing to restore the three-phase power needed to operate its factory machinery for more than a year.
The ruling overturns a 2018 High Court Commercial Division decision that dismissed the company’s case against the electricity distributor.
In a judgment delivered on 28 October 2026, a panel comprising Justices Esta Nambayo, Cheborion Barishaki and Musa Ssekaana found that UMEME had no legal justification for keeping the factory disconnected merely because electricity theft had been reported in the neighbourhood.
Edroch’s electricity was disconnected in July 2012 following reports of power theft in Katoogo Zone, off Nabweru Road in Kawempe Division, Kampala. However, investigations identified a maize mill as responsible, and Edroch was neither implicated nor charged.
Justice Nambayo said suspicion of electricity theft in an area was not sufficient grounds to disconnect every customer served by the affected power line.
Although electricity was eventually restored to the neighbourhood, Edroch continued receiving only two of the three power phases required to run its machinery.
The company’s managing director, Muwonge Noah, repeatedly asked UMEME to restore the full supply, including through a written complaint received on 16 October 2012.
The court noted that UMEME’s own witnesses acknowledged that the factory needed three-phase electricity and could not operate on the two phases supplied. Its district manager, Hussein Mubiru, was also unable to explain why the problem remained unresolved for more than 13 months.
Justice Nambayo ruled that UMEME had failed to exercise reasonable care and meet its obligation to restore electricity as soon as possible after an interruption.
The court, however, rejected Edroch’s claim for Shs275.991 million in special damages, finding that the company had not sufficiently proved the specific financial losses it sought to recover.
Edroch had claimed Shs192.6 million for damaged work in progress and Shs83.391 million in retained losses.
Although the company had sought Shs200 million in general damages, the court awarded Shs100 million for the prolonged disruption, inconvenience and inability to operate its machinery.
UMEME was also ordered to pay the company’s legal costs for both the High Court case and the appeal.
