The Impact of Digital Technology Adoption on Financial Performance: A Case Study of Umeme Limited, Uganda

Beinomugisha Mary, David Ongabi Nyambane*, Manyange Michael Nyasimi and Tom Ongesa Nyamboga

Department of Business Kampala International University Uganda

Email: david.ongabi@kiu.ac.ug; manyangemike@kiu.ac.ug

ABSTRACT

This study investigates the impact of digital technology adoption on the financial performance of Umeme Limited, the largest electricity distribution company in Uganda. Despite significant investments in digital technologies starting in 2010, recent trends indicate mixed results regarding financial performance. This paper examines the period between 2017 and 2019, during which Umeme’s share price surged by over 300%, making it a top performer on the Uganda Securities Exchange. By employing financial metrics such as liquidity, efficiency, and profitability, the study assesses the correlation between digital technology investments and financial outcomes. The findings highlight that while initial technology investments significantly boosted financial performance, sustaining these gains requires strategic alignment and continuous improvement in digital adoption.

Keywords: Digital Technology Adoption, Financial Performance, Umeme Limited, Liquidity, Efficiency and Profitability.

CITE AS: Beinomugisha Mary, David Ongabi Nyambane, Manyange Michael Nyasimi and Tom Ongesa Nyamboga (2024). The Impact of Digital Technology Adoption on Financial Performance: A Case Study of Umeme Limited, Uganda. RESEARCH INVENTION JOURNAL OF CURRENT ISSUES IN ARTS AND MANAGEMENT 3(2):56-64.