Electricity has long been a barometer of economic vitality. The more a country consumes, the more it produces.
In East Africa, this relationship between power and prosperity is becoming increasingly clear.
World Bank data on peak electricity demand versus GDP across East Africa shows Uganda trailing regional giants like Kenya and Tanzania, both in energy usage and economic output.
Yet it also reveals the country’s immense potential, and the urgency of closing its energy gap if it is to accelerate industrial growth.
Kenya tops East Africa in both economic size and power consumption, with a peak electricity demand of 2,316 megawatts, supporting a GDP of $124.5b.
It’s followed closely by DR Congo, with 2,174 megawatts and a GDP of $70.75b. Tanzania comes in at 1,944 megawatts for $78.78b in GDP.
Uganda ranks fourth, with peak demand of 1,176 megawatts and an economy valued at $53.65b.
Government has recently indicated that the economy has now expanded to $61b. It was not immediately clear whether the consumption had expanded as well.
However, despite ranking below its peers, Uganda’s power consumption relative to its GDP suggests a growing, but still underpowered, economy.
Ministry of Energy data shows that, as of November 2024, about 2.3 million households from rural and urban areas, which represent 60 percent of households, had access to electricity, 22 percent of which were on-grid access.
At the lower end of the table are Rwanda and Burundi, whose economies and energy demands remain modest.
Rwanda’s peak demand is 262 megawatts with a GDP of $14.25b, while Burundi trails at 70 megawatts and $2.16b.
The power-GDP connection
Economic output and electricity consumption have a near-linear relationship; as industries expand, urbanization rises, and household incomes improve, demand for energy surges.
Kenya’s manufacturing and service sectors are far more energy-intensive than Uganda’s, reflecting its larger industrial base and higher electrification rate.
Uganda’s per capita electricity consumption remains below 200 kWh per year, far less than Kenya’s estimated 500 kWh. This deficit limits industrial capacity, slows mechanization in agriculture, and raises production costs for small and medium enterprises, all of which directly constrain GDP growth.
Data shows that while Uganda’s GDP is roughly 43 percent of Kenya’s, its electricity demand is barely 50 percent, which underscores how access to reliable and affordable energy remains one of Uganda’s biggest barriers to economic transformation.
Government has made substantial investments in generation capacity over the past decade, including flagship projects such as Karuma Hydropower Station (600 megawatts) and Isimba Dam (183 megawatts).
Yet much of this remains underutilized due to transmission bottlenecks and limited demand from industry.
Uganda’s installed capacity, according to the Electricity Regulatory Authority, has grown from 60 megawatts in 1954 to 2052.7 megawatts as of January 2025. The growth creates a surplus of about 876.7 megawatts, which has not been helped by low factory production capacity, which stands at about 55 percent, according to Uganda Manufacturers Association, and high tariffs that have made rural connectivity almost out of reach.
Thus, for Uganda to compete, it will need to boost not just power generation, but electricity consumption per capita, particularly in manufacturing and agro-processing.
The Tenfold Growth Strategy, which targets a $500b economy by 2040, cannot be realised without a corresponding surge in power demand and consumption.
The country’s challenge is no longer about producing electricity; it’s about absorbing it into a productive economy. As new hydropower projects come online, the focus must shift to connecting households, powering factories, and ensuring that electricity becomes the backbone of growth.
In the regional race between megawatts and money, Uganda’s next leap will depend on how quickly it can turn kilowatts into jobs, exports, and industrial momentum.
As the data shows, powering prosperity isn’t just about energy; it’s about using it to spark transformation.
The Energy Ministry has already revealed that the next phase of Uganda’s electricity sub-sector will be creating jobs, powering exports, and supporting agro-industrialisation.