Why taxi sector reforms require delicate approach to succeed

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OPINION

By Alex Bashasha

Transport systems that enabled mobility of people and goods in Uganda have evolved over time.

During the colonial era, transport systems were designed based on movement of goods.

There was a need to move goods from one place to the other but passenger transport was not common.

People often hitched lifts on a truck that carried goods. Listening to the elders’ stories, it is evident that there were no organised or particular passenger transport systems, but there were deliberate efforts in planning for movement of goods between places dating back to the early 1900s.

The availability of food, cash crops and raw materials informed the design of transport systems to link the rural areas to urban settlements.

From the late 1940s, urban settlements had started growing and the demand for transport of goods and passengers was rising. The enabling infrastructure in the form of road, railway and water boat systems were also taking shape.

Slowly, passenger transport systems started taking shape with some buses and saloon cars coming as complements.

By 1960, Uganda had a road network that connected places for easy movement of goods and passengers.

Scheduled passenger transport vehicle systems were in place and people planned their movements to use the railway, air, road and water to travel to places within and out of Uganda.

The late 60s and 70s was the best time for the bus business as well as other passenger vehicles. Buses were always on schedule. Soldiers and school children were not charged any fare as long as they were in proper army and school uniform, respectively.

By the early 1970s, efforts had yielded and a nationalised transport company had been formed. This nationalised company became the Uganda Transport Company, which was later divided into the Uganda Transport (1975) Company Ltd. (UTC) and the People’s Transport Company (PTC).

While the public bus company UTC primarily served Kampala and the western part of Uganda, the People’s Transport Company (PTC) was established to provide public transport services in the eastern region, with its headquarters in Jinja.

Other private bus companies also came up to complement the nationalised bus systems particularly to serve areas that were not covered by UTC and PTC.

Uganda Co-operative Transport Union limited (UCCTU) was involved in huge haulage of cargo. To supplement the services offered by UCCTU, individuals who owned pickups, including Peugeot 404s and Toyota Stouts joined in trade and transformed their cars to carry both seated passengers and cargo. These transported mainly perishable goods and passengers who wanted quicker transport.

These were later phased out and replaced with comfortable commuter vans which operate up to today. Beside the vans, is the famous and disorganised bodaboda motorcycle transport system today.

There are an estimated 1.5 million bodabodas operating in Uganda. Kampala alone has an estimated 350,000 bodabodas. Police reports indicate that bodaboda motorcycles are a major contributor to road accidents in Uganda, accounting for a significant portion of fatalities and injuries. In 2023, motorcycles were responsible for nearly 45% of road accident deaths.

The Government’s recent announcement to phase out individual taxi operators in favour of registered associations or SACCOS marks a pivotal moment in Uganda’s public transport history. While the intent — streamlining operations, enhancing safety and curbing reckless competition — is commendable, the success of this policy hinges on inclusive implementation and lessons from past failures.

Structured systems like Kenya’s Matatu SACCOS and Rwanda’s fixed-route timetables have improved efficiency and accountability. Collective operations reduce predatory pricing, enable risk-sharing and ease access to credit. Formalising the sector allows targeted government support, akin to initiatives for teachers and vendors.

Uganda’s taxi sector is ripe for reform. As with matatus in Nairobi or bus co-operatives in Kigali, collaboration — not coercion — will determine whether this policy lifts drivers or leaves them stranded.

Therefore, the Government’s plan to reorganise public service vehicle (PSV) operations under savings and credit co-operative societies (SACCOS) or associations is the right step toward modernising Uganda’s chaotic transport sector.

By mandating collective ownership and digitised management, this policy will address long-standing issues of reckless competition, safety lapses and regulatory inefficiencies.

Fixed timetables and route-based SACCOS, like in Rwanda, could enhance reliability, while pooled resources among drivers may lower maintenance costs and improve vehicle conditions.

For the Government, SACCOS simplify oversight, enabling targeted support during crises. Taxi owners, meanwhile, gain access to credit, shared liability and collective bargaining power, thereby fostering financial resilience.

To ensure success, implementation needs to prioritise stakeholder dialogue. Past reforms faltered due to top-down approaches; this time, gradual sensitisation and phased adoption are critical.

The Government should regulate fares like Kenya does to prevent exploitative pricing at stages, where passengers often face arbitrary charges. Transparent fare structures, enforced through SACCOS, would align with public interest and international norms.

Lessons from Kenya’s route-based SACCOS and Rwanda’s timetable systems bring to light the need for accountability and infrastructure readiness.

Prof. Alex Bashasha (PhD) is the Director General of TABKEN Consults on Development and a fellow of Unicarribean Business School