Business

Umeme to close down cash offices

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By Stephen Otage

Posted  Thursday, January 30  2014 at  02:00

In Summary

The move is intended to minimise corruption among other things.

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Kampala.

Electricity distribution company, Umeme, has announced that it will start closing down its 25 cash offices all over the country.
This, the company said, is to pave way for them to concentrate on their core business of distributing power.
While addressing journalists yesterday in Kampala, Mr Selestino Birungi, the Umeme chief finance officer said about 70 staff will be affected but that they will be re-deployed in other sections of the company.

“Other utility companies like Uganda Revenue Authority and National Water and Sewerage Corporation have fully converted their systems into cashless systems, but we are taking a phased approach,” he said.

Mr Birungi made the pronouncement as Umeme signed a contract with Ezeemoney, a new online payment solution company where the customers will be able to make payments using electronic money.

“We had only 25 cash outlets all over the country but these people have over 1,500 cash payment outlets which make it better for us to abandon cash collections and concentrate on our core business,” he said.

He added that the utility company has so far managed to connect 50,000 customers onto pre-paid meters as the company rolls out its $440 million expansion drive upto 2018 when it hopes to fully connect its customers from postpaid meters to pre-paid meters adding that already, 700 meters have been connected to government ministries, departments and agencies.