Uganda: UCC report: Electricity shortages leave nearly 800 towers non-operational
January 4th 2026
KAMPALA, Uganda — Limited access to electricity has left at least 780 installed telecom towers idle across Uganda, forcing providers to spend more than $60 million annually to power their networks, according to the Uganda Communications Commission.
The findings, detailed in the Annual Communications Sector Report 2024 released Dec. 12, identify power shortages, high taxes and regulatory fees as the primary obstacles to expanding the nation’s digital infrastructure.
With only 25% of the country connected to the hydroelectric grid, telecom operators must rely on expensive diesel generators and solar systems. The UCC noted that equipping a single site with transformers and backup power can cost between $60,000 and $270,000.
The commission contrasted Uganda’s landscape with neighboring Kenya, where 76% electricity coverage has helped drive mobile penetration to 64%. In Uganda, mobile usage stands at 32%.
The report also highlighted a 35% import tax on galvanized steel, a critical component for towers that is not produced locally. The UCC stated these costs are often passed on to consumers, further raising the price of services.
Environmental and regulatory fees also add to the burden. Operators must pay five years of rent upfront to install infrastructure in sensitive areas, including $20,000 to the Uganda Wildlife Authority and $15,000 to the National Environment Management Authority.
“While these fees support environmental protection, they raise total site costs to about $175,000, making it difficult to justify investments in remote, low-population areas,” the report stated.
Logistical hurdles, such as poor roads and mountainous terrain, further delay construction in rural regions. Consequently, infrastructure remains concentrated in urban hubs. The Central region, including Kampala and Wakiso, hosts 44% of all towers in the country.
The UCC warned that without reforms to power access and taxation, the digital divide between urban and rural communities will continue to widen.
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