**Table 5 Corporate governance of utilities in Uganda and comparators, 2015**<sup>15</sup>

||Kenya<br>Kenya Power|Senegal<br> SENELEC|Tanzania <br>TANESCO|Uganda<br> UMEME|International<br>benchmark|
|---|---|---|---|---|---|
|**Overall Utility Governance**|**90%**|**65%**|**61%**|**80%**|63%|
|**Corporate Governance**|100%|74%|57%|85%|62%|
|_Accountability_|_100%_|_58%_|_58%_|_92%_|60%|
|_Autonomy (SOEs)_|_100%_|_89%_|_56%_|_78%_|63%|

Note: Scores based on index developed for the Rethinking Power Sector Reform Project. For more details go to project website at http://www.esmap.org/rethinking_power_sector_reform Umeme scores 77 percent on our financial discipline index, its primary black mark being that the company does not have a credit-rating. Umeme prepares annual financial statements according to the requirements of International Reporting Financial Standards (IFRS). It is also audited by external auditors approved by the Institute of Professional Accountants of Uganda. Umeme’s concession contract includes performance targets set by the ERA. Umeme has to meet these targets and thus does not have any shareholder targets. If Umeme’s operational performance matches the targets set by the regulator, assuming no growth in sales volume during the retail tariff year, its annual return from operating the electricity distribution concession will be equal to a contractually allowed return on its capital investments of 20 percent. This contractual return is set through the life of the concession.

**Table 6: Utility Management index of utilities in Uganda and comparators, 2015**<sup>16</sup>

||Kenya<br>Kenya Power|Senegal<br> SENELEC|Tanzania <br>TANESCO|Uganda<br> UMEME|International<br>benchmark|
|---|---|---|---|---|---|
|**Utility Management**|**80%**|**56%**|**65%**|**76%**|64%|
|_Financial Discipline_|_76%_|_57%_|_64%_|_77%_|59%|
|_Human Resource_|_64%_|_57%_|_71%_|_71%_|62%|
|_Information and Technology_|_100%_|_53%_|_60%_|_80%_|71%|

Note: Scores based on index developed for the Rethinking Power Sector Reform Project. For more details go to project website at http://www.esmap.org/rethinking_power_sector_reform Umeme’s human resource framework reflects and is in line with the 2006 Employment Act. There is a strong focus on staff development and the company runs a training school, the Umeme Academy in Jinja, which offers various programs through which employees can develop their professional skills. Umeme’s salary package is competitive in the industry and the company is a popular employment destination for University graduates and professionals. The company offers performance-based bonus plans, yearly salary increments, and employee stock schemes rewards. Umeme’s staff comprise a diversity of professions, including engineering, operations, finance, IT, HR, research and development, corporate affairs, law, communications, sales, customer care and other cross-cutting disciplines. Recruitment into the company is conducted in one of three ways: internships for university students in their second or third years; graduate recruitment, which involves an intensive rotation training program to provide a holistic understanding of the business; and professional recruitment of experienced individuals normally through adverts in national newspapers, radios and online. The company has employed the latest IT solutions to improve its quality of service.

> 15 For the detailed corporate governance index, see the annex.

> 16 For the detailed utility management index, see the annex.

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