KAMPALA, Uganda  — The government announced plans Monday to phase out individual taxi operators in favor of organized associations or SACCOs to streamline public transportation.
State Minister for Transport Fred Byamukama told reporters at a press conference in Kampala that the policy shift aims to create a more organized transport industry, aligning with global practices. The changes will affect taxis and buses, primarily in Kampala and other towns.
“We want drivers to operate taxis under an association and not as individuals operating in a particular stage,” Byamukama said.
He also noted that seven vehicle inspection centers are operational, requiring all taxis to undergo inspection for roadworthiness certification.
Winstone Katushabe, the commissioner for transport regulation and safety, clarified that individual taxi operation will no longer be permitted. Drivers will be required to join a registered association or Savings and Credit Cooperative Society (SACCOS).
Katushabe explained that this move would reduce competition, enhance safety and order at taxi stages through rotating shifts, and enable drivers to access credit and share financial risks, facilitating the acquisition of new vehicles. He did not specify a timeline for the policy’s implementation.
Historically, Uganda’s public transport sector has seen shifts in management. The Uganda Transport Company (UTC) held a monopoly until its collapse during political turmoil, leading to the rise of private operators and minibus taxis. Later, the Uganda Taxi Operators and Drivers Association (UTODA) emerged but also dissolved in the early 2000s.
Several countries, including Rwanda and Kenya, have already implemented structured public transport systems managed by registered associations. Kenya’s “matatu SACCOS” system digitizes operations and promotes transparency, while Rwanda mandates fixed routes and timetables monitored by government agencies.
Byamukama also announced the introduction of a digital penalty system under the Integrated Transport Monitoring System (ITMS), utilizing AI-powered CCTV and digital number plates to detect traffic violations. Fines for offenses will increase; for instance, exceeding the speed limit by over 30 km/h will incur a fine of 600,000 shillings, up from 200,000 shillings. The system can reportedly detect both digital and non-digital plates nationwide where signal coverage exists.
The ITMS project is a collaboration between the Ugandan government and a Russian firm, Joint Stock Company Global Security (JSGC), aiming to improve road safety and traffic management. Police statistics indicate a rise in traffic fatalities, with 5,144 deaths in 2024 compared to 4,806 in 2023.
Mustapha Mayambala, chairperson of the Uganda Transport Drivers and Allied Workers’ Union, criticized the lack of consultation with stakeholders, accusing the ministry of having a “hidden agenda to dismantle taxi operations.” He argued that taxi operators are already organized along registered routes and called for dialogue and sensitization.
Charles Ssentongo, chairperson of the Masaka taxi route in Kampala New Park, echoed the need for broader consultation despite agreeing with the idea in principle. Haji Majidu Nsiko, leader of the Federation of Kampala Taxi Operators on the Eastern Route, welcomed the reform but emphasized the need for gradual implementation.
Economist Asuman Guloba from the National Planning Authority (NPA) supported the shift to SACCOS, stating it would facilitate government support for drivers, similar to other sectors. He believes the policy will improve regulation and accountability within the taxi industry.
