Govt to phase out individual taxi operators

KAMPALA - The Government has announced a major shift in managing public service vehicles (PSVs), including taxis and buses, by eliminating individual operators in favour of organised associations or SACCOS. 

The state minister for transport, Fred Byamukama, made the announcement during a press conference held yesterday at the Uganda Media Centre in Kampala. 

He said the move is aimed at streamlining public transport, particularly in Kampala and upcountry towns. 

“We want drivers to operate taxis under an association and not as individuals operating in a particular stage. This is aimed at having an organised transport industry as is done globally,” Byamukama said. 

He noted that seven vehicle inspection centres are already operational, and all taxis must undergo inspection before receiving roadworthiness certificates. 

Winstone Katushabe, the commissioner for transport regulation and safety at the Ministry of Works and Transport, clarified that individual taxi operations will no longer be permitted under the new policy. 

Drivers must be affiliated with a registered association or Savings and Credit Cooperative Society (SACCOS). 

“The plan is not to allow operating a taxi as an individual, but under a SACCOS or an association to eliminate cut-throat competition because they do not have scheduled timetables,” Katushabe said. 

He added that this change would enhance safety and order at taxi stages by introducing rotating shifts that can reduce stage-related conflicts. 

Katushabe further explained that collective operation would allow drivers to access credit, spread financial risks and ease the acquisition of new taxis. 

“It is the best way to regulate the taxi industry and enhance economic growth, moving away from road competition for passengers. These are best practices globally,” he said without giving a timeframe when they intend to roll out the new policy.

Previous performance 

If implemented, this will not be the first time PSV business is restricted. By the time of Independence in the 1960s, the Uganda Transport Company (UTC) monopolised bus service provision. 

UTC collapsed during the turmoil of Idi Amin’s rule and the civil war of the 1980s, and private operators entered the market, along with minibus taxis. 

When NRM came to power, the sector was liberalised, operating in a regulatory vacuum, though from the mid-1980s the taxis were organised through a powerful association, the Uganda Taxi Operators and Drivers Association (UTODA), which also collapsed in the early 2000s. 

Besides, several countries require public transport to be managed by registered associations. Rwanda and Kenya already have structured public transport systems that have improved service delivery.

Byamukama (second-right), Katushabe (second-left) and other officials after a press conference at the Uganda Media Centre in Kampala.

How others are doing it 

Kenya uses the matatu SACCOS management system, where matatu (taxi) owners work under several route-based savings and credit societies (SACCOS) and welfare organisations. 

The system digitises operations such as fleet management, ticketing and compliance.

The system promotes transparency and provides real-time data for decision-making. 
The SACCOS also pool resources and redistribute them to members through a credit scheme or by investing in the transport support sectors like petrol stations. 

They also organise route operations with a view to improving service delivery. 

Other objectives include addressing general welfare concerns of members, and articulating members’ interest to relevant government organs. 

In Rwanda, all public service vehicles operate on fixed routes and timetables, monitored by government agencies to ensure safety and efficiency. 

In Rwanda the government also has a system for route and timetable for public service vehicles (PSV) through which it monitors PSV operations to ensure compliance with regulations and enforce penalties for violations. 

Digital enforcement  

Minister Byamukama also revealed that the Government will introduce a digital penalty system to crack down on reckless driving. 

The system, part of the Integrated Transport Monitoring System (ITMS), uses AI-powered CCTV and digital number plates to detect violations. 

The new system introduces higher fines for common violations. For example, exceeding the speed limit by more than 30km/h will now attract a fine of sh600,000, up from the previous flat rate of sh200,000. 

The minister said the camera system is capable of detecting both digital and non-digital number plates and can monitor vehicle movements nationwide, wherever signal coverage exists. 

“When you cause an accident, CCTV cameras shall capture you and we shall send you a message to your phone. You shall be charged sh200,000,” Byamukama said. 

The ITMS project is a collaboration between the Ugandan government and Russian firm Joint Stock Company Global Security (JSGC). It aims to enhance road safety, traffic management and national security. 

According to the Police, 5,144 Ugandans died in traffic accidents in 2024, an alarming rise from the 4,806 deaths recorded in 2023. This translates to an average of 14 deaths per day, with over 80% of the accidents attributed to reckless driving.

Mayambala

Taxi operators have their say

Mustapha Mayambala, the chairperson of the Uganda Transport Drivers and Allied Workers’ Union, criticised the ministry for failing to consult the stakeholders. 

“The problem with the ministry of works officials is that they learn too much English and come up with regulations without consulting stakeholders. They have a hidden agenda to dismantle taxi operations,” he said. 

Mayambala argued that taxi operators are already organised along registered routes such as Masaka and the eastern routes. He called for inclusive dialogue and sensitisation before implementing the new system. 

“You cannot just call a press conference without involving us. Because you have a hidden agenda to crush taxi operators,” he said. 

“Why bring a law now? Let the ministry of works sit together with us and other stakeholders, and we agree on the way forward.” Charles Ssentongo, the chairperson of the Masaka taxi route in Kampala New Park, echoed similar concerns and emphasised the need for broader consultation despite agreeing with the idea in principle. 

Haji Majidu Nsiko, who leads the Federation of Kampala Taxi Operators on the Eastern Route, welcomed the reform, but stressed that it must be implemented gradually. 

“There is no problem. We shall not oppose the Government, but there is need to go step by step to sensitise the stakeholders,” Nsiko said. 

Asuman Guloba, an economist with the National Planning Authority (NPA), said the shift to SACCOS is good from economic point because it will ease the Government’s support for drivers just like teachers, market vendors, and others have been supported. 

“The Government can support the drivers as they can trace their leader and not like during COVID-19 when the Government wanted to support vulnerable groups, but could not locate them,” Guloba said. 

He said the bottom line is that the proposed policy is a good thing for better regulation because the taxi drivers are serving the public, and in case of causing accidents, the driver can be traced.

“Any regulation that improves operations is good because a taxi driver’s job comes with responsibility,” Guloba said.