By Spy Uganda
Limited access to electricity has left at least 780 telecom towers installed but non-operational across Uganda, forcing telecom companies to spend more than US$60 million (about Shs217.2 billion) annually to sustain power at network sites, the Uganda Communications Commission (UCC) has revealed.
The findings are contained in the Annual Communications Sector Report 2024, published on December 12, 2025, which identifies electricity shortages, high taxation, and regulatory costs as major barriers to expanding telecom infrastructure nationwide.
According to UCC, only 25 percent of Uganda is connected to hydroelectric power, compelling telecom operators to rely heavily on costly alternatives such as diesel generators and solar energy systems to keep towers running.
“Power-related costs for the telecom sector are estimated at about US$60 million annually, largely due to dependence on generators and solar instead of grid electricity,” the Commission noted. “Equipping a single tower with transformers, solar panels, and backup generators can cost between US$60,000 and US$270,000 per site.”
As a result, more than 780 network-ready towers remain idle solely because they lack electricity, undermining national efforts to expand digital connectivity, especially in rural and underserved areas.
UCC contrasted Uganda’s situation with neighboring Kenya, where 76 percent electricity coverage supports 64 percent mobile penetration, compared to Uganda’s 32 percent mobile usage alongside 25 percent electricity access.
The report also raised concern over Uganda’s 35 percent import tax on galvanized steel, a key material for tower construction that is not manufactured locally. UCC said the tax significantly increases capital expenditure for telecom firms, with costs ultimately passed on to consumers.
“Operators have no option but to import galvanized steel at high cost, inflating capital expenditure and raising the cost of telecom services,” the report stated.
In addition, telecom companies face steep regulatory fees when installing infrastructure in environmentally sensitive areas such as wetlands and national parks. Operators are required to pay five years’ rent upfront, including US$20,000 to the Uganda Wildlife Authority (UWA) and US$15,000 to the National Environment Management Authority (NEMA).
“While these fees support environmental protection, they raise total site costs to about US$175,000, making it difficult to justify investments in remote, low-population areas,” UCC observed.
Logistical challenges further complicate network expansion in rural and hard-to-reach regions. Poor road networks, mountainous terrain, flooding, and landslides frequently delay tower construction and maintenance.
“A tower that may take a week to build in an urban area can take months in a rural setting,” the Commission noted, adding that such delays discourage investment in underserved communities.
As a result, telecom operators have concentrated infrastructure in commercially viable regions, despite license obligations requiring coverage of at least 90 percent of licensed areas. The Central region, particularly Kampala and Buganda, accounts for 44 percent of all telecom towers nationwide, with Kampala and Wakiso alone hosting about 1,841 towers.
In contrast, the remaining 12 sub-regions, each with populations below 4.3 million, continue to lag behind due to lower commercial returns.
UCC warned that unless challenges related to power access, taxation, and regulatory costs are addressed, Uganda risks widening its digital divide, leaving rural and remote communities further disconnected from essential communication services.
