By Denis Jjuuko
The cost of land in greater Kampala and indeed other urban areas of Uganda skyrockets all the time making it hard for the majority of people to become homeowners. This increases the country’s housing deficit annually. Currently, the housing deficit stands at approximately 2.4 million units.
One of the major reasons for the high cost of land is lack of utilities or actually their availability. If an area gets connected to the national electricity grid and water mains, the prices of land shoot up. If a road is built, the prices triple or even quadruple.
The land owners know that availability of utilities like electricity and water is an attraction because where they are not available, the costs to get them can be huge. For example, a new connection may cost you less than Shs100,000 where you don’t need a pole and willing to wait for the government subsidized one or more than Shs500,000 for a self-funded connection.
Should there be no pole near you, the costs become excessive as they run into millions of shillings. A single-pole connection costs in excess of Shs2.8m. Should you need more than one pole, the costs become limiting and you have to look for a private company to build that line for you. There is no guidance on how much that costs. Each company charges as they wish.
When it comes to a factory or business that needs three-phase electricity and a transformer, the costs could be humongous. The alternative land in areas where electricity is available like the industrial parks is not affordable for small businesses leaving them without any options but to incur high startup costs.
Water isn’t any different. If there are no major water pipes near you, you suffer the same fate by installing them at your cost.
I think it is these costs that enraged the outgoing Mawokota South Member of Parliament Yusuf Nsibambi to cut down the poles he had installed when the voters rejected them in the January 2026 polls. He claimed on live television that there was no return on investment after getting the fewest of votes from areas where he had installed electricity and sunk boreholes using personal resources. He has since crossed from the opposition FDC to the ruling NRM.
Nsibambi may have been lucky not to be arrested for cutting down ‘his’ electric poles and vandalizing the power lines. This is because once you install them, the government agency, UEDCL and Umeme before them, maps them and registers them as their own assets. They include them in their inventory.
When electricity and water utilities are publishing their achievements and investments on glossy paper, they include the kilometres of electricity lines, transformers and water mains installed. What they don’t tell you is that some of those aren’t built by them and therefore shouldn’t claim them.
If I build my own electricity line or install water or a transformer, why should the government utility claim them? Just because they sent a guy or two on a motorcycle with a GPS machine and wrote down the coordinates? The cost of taking down GPS coordinates is insignificant compared to the cost of building the line, buying the transformer and all the stuff.
Now, over the weekend the Minister of Energy and Mineral Development terminated the services of the board chair of UEDCL and sent the managing director on forced leave. The newly appointed acting board chair was swift in naming an acting managing director. Everyone hopes that services will improve. One of the issues should be reviewing new connections especially where there is no pole or transformer.
The minister and the regulator need to instruct UEDCL not to demand payment from people who buy a pole, build a line or install transformers until their investment is covered. The surveyors they send to establish that a pole, three-phase or transformer is required can put it in their report and come up with workable cost.
When the person goes ahead and funds this connection, then they can credit the customer’s account with the money spent. Every month, they can deduct what the customer has consumed until the credited amount is used up. Thereafter, the customer can start paying for the service.
That way, the utility company has not ‘stolen’ a private line or transformer and passed it as their own. The homeowner or business would have their money back and that would lead to lower costs of land and/or doing business.
The writer is a communication and visibility consultant. djjuuko@yahoo.com
