By Andrew Irumba
KANUNGU | November 25, 2025 — The Government of Uganda has today switched on a new chapter of rural industrialization after commissioning electricity supply to the Mpungu Tea Factory, a community-owned agro-industrial venture powered by 8,300 smallholder farmers.
Hon. Dr. Ruth Nankabirwa, Minister of Energy and Mineral Development, presided over the commissioning ceremony and declared the project a “transformative catalyst” for Kanungu’s economy.
The Minister praised the people of Mpungu Sub-County for their unity, resilience and vision—mobilising themselves, raising resources, and establishing a tea factory rooted in the spirit of the Parish Development Model and the NRM philosophy of wealth creation.
According to the Minister, the factory had been completed with financing from Uganda Development Bank (UDB) in 2022, but its operations were crippled after relying on an expensive generator. High fuel costs forced it to shut down before production could begin.
“We understood that without electricity, your investment would stall, jobs would delay and economic returns would remain unrealised,” Dr. Nankabirwa said.
In response, the Ministry of Energy funded Uganda Electricity Distribution Company Ltd (UEDCL) under the Government Priority Schemes Project to connect the factory to the national grid.
UEDCL completed:
- 1.31 km of medium-voltage line
- 1.71 km of low-voltage line
- Installation of two 500kVA transformers for the factory
- Another 50kVA transformer for Omukimanyu Village
The project cost UGX 883.4 million, with local residents generously providing free way leave access — a contribution the Minister hailed as “patriotic and exemplary.”
Dr. Nankabirwa emphasised that the new electricity supply is more than a technical installation—it is a lifeline for rural prosperity.
“This intervention is not merely about lighting a factory,” she said. “It unlocks value addition in the tea sector, creates jobs for youth and women, increases household incomes, boosts exports and stimulates rural economic growth.”
With power now stable, the factory is expected to begin full-scale processing, directly benefiting the 8,300 smallholder farmers who own and supply it.
The Minister noted that Kanungu District has received several electrification investments over the years, including projects funded by Exim Bank of China, KfW, the World Bank’s ERT III, the African Development Bank (UREAP Project), GESPaD, and new schemes under the Electricity Access Scale-Up Project (EASP) and the SME Priority Project.
She urged residents to take advantage of the ongoing Free Electricity Connection Programme for one-pole and no-pole connections.
Dr. Nankabirwa reaffirmed the Ministry’s commitment to expanding access, strengthening transmission and reinforcing distribution to ensure factories operate reliably and farmers participate in high-value agro-processing.
“Your factory is now ready—and so is the power that will drive its operations,” she said, thanking UEDCL, UDB, district leaders and the community for a “visionary partnership that will transform lives for generations.”
Official Commissioning
With a symbolic gesture, the Minister officially commissioned the Mpungu Tea Factory Rural Electrification Scheme, declaring:
“May this factory bring prosperity to the households of Kanungu and stand as a model of what unity and government support can achieve.”
