By Public transportation costs are expected to increase over the next two years, stakeholders in the sector cautioned yesterday, as the government began the installation of new digital number plates on all privately-owned vehicles.
This development marks the third phase of the Intelligent Transport Monitoring System (ITMS) project, which commenced on January 6, 2025. Under this phase, digital number plates will be installed on privately-owned vehicles and motorcycles. Government vehicles had the plates installed starting mid-2024 during the earlier phase of the project.
According to the Ministry of Works and Transport, new vehicle and motorcycle importers will be required to pay Shs714,300 for digital number plates. Owners of existing vehicles and motorcycles looking to replace their old plates will pay Shs150,000 and Shs50,000, respectively.
Transport sector stakeholders have criticized the uniform fee for private and commercial vehicles, calling the policy unfair.
“Our vehicles already have old number plates, and we pay annual taxes on them,” remarked Mr. Rashid Ssekindi, chairperson of the Uganda Taxi Operators Federation. “A more equitable solution would be to offer a reduced rate for commercial vehicles, rather than charging the same amount as saloon cars that only incur a single annual tax.”
Mr. Dickson Mujuni, secretary general of the Boda Boda Industry Uganda, expressed similar concerns, citing the financial burden on transport operators.
“The price of new motorcycles has already risen significantly—from Shs5.5 million to Shs6.5 million—due to these changes. This escalation in operational costs further strains our businesses, which are already grappling with numerous expenses,” he noted.
Government’s Response
In defense of the policy, Works and Transport Minister Gen. Katumba Wamala emphasized that regulations are designed to apply uniformly.
“There is no country where laws and regulations are made for different classes of people,” Gen. Wamala asserted, reiterating the government’s stance that the digital number plate requirements will not discriminate between private and commercial vehicle owners.
Vehicle owners have been given a two-year window to replace their existing plates with the new digital versions.
Background and Implementation
The ITMS project, implemented by the Russian firm Joint Stock Company Global Security (JSCGS), was launched on November 1, 2023. The initiative began with government vehicles, with a total of 2,721 digital plates already installed.
Despite its rollout, the project has faced criticism, with some stakeholders questioning the rationale behind its uniform application and the associated financial implications.
Impact on Commuters
Sector representatives unanimously agreed that the added costs will likely be transferred to passengers, further burdening commuters who rely on public transportation.
The ITMS project aims to enhance road safety, curb vehicle-related crimes, and improve overall transport monitoring. However, as implementation progresses, concerns about affordability and equity remain prominent among stakeholders and citizens alike.
