Vehicle Number Plate Shortage Hitting Ugandan Businesses Hard, KACITA Reports

The Kampala City Traders Association (KACITA) has voiced significant concerns regarding the ongoing shortage and elevated pricing of digital vehicle number plates, stating that these issues are severely hindering business operations and eroding public confidence in the automotive trade.

During a meeting with the Committee on Physical Infrastructure, KACITA Chairperson Issa Sekitto expressed doubts about the production capabilities of the current service provider tasked with supplying plates under the Intelligent Transport Monitoring System (ITMS). Sekitto highlighted that the delays are not mere inconveniences but are systematically damaging businesses, leading to lost sales and a tarnished reputation as customers grow frustrated with prolonged waiting periods.

The association specifically criticized the Shs714,300 fee for new digital plates, deeming it an excessive burden on both dealers and consumers. This high cost contributes to inflated vehicle prices, making it difficult for businesses already struggling with economic recovery to remain competitive.

The ITMS program, designed to improve vehicle tracking and curb crime through embedded technology, is a joint effort involving the Ministry of Works and Transport and security agencies. However, KACITA argues that the current operational issues are counterproductive to the program’s broader goals.

Committee Chairperson Hon. Mwine Mpaka acknowledged the traders’ plight, emphasizing Parliament’s role in seeking solutions. He stressed the need to address the issues of capacity, cost, and reliability. Members also questioned the affordability of the pricing structure and inquired about contingency plans for stockouts and the contractor’s ability to meet demand.

KACITA reaffirmed its support for security and road safety initiatives but insisted that the current logistical problems are frustrating the very processes they are meant to streamline. The committee is expected to summon the relevant agencies and the service provider for further investigation.

Source: Parliament of Uganda