Government Cracks Down on Car Dealers Over Illegal Clearance Fees

The Ministry of Works and Transport has launched a stern warning to car bond operators in Kampala, threatening severe penalties including business closure and license revocation for alleged illegal clearance charges.

The ministry has intensified its crackdown following complaints from Members of Parliament, leading to unannounced inspections of several car dealerships.

Officials discovered that some car dealers are charging motorists anywhere from Shs800,000 to Shs2 million, significantly exceeding the officially approved clearance fee of Shs714,300.

Commissioner for Road Safety, Winston Katushabe, stated that the ministry will not tolerate the exploitation of motorists through unexplained and unauthorized fees.

To ensure transparency, car bond operators have been instructed to prominently display the official fee structure at their premises, allowing customers to clearly understand the costs involved.

The ministry emphasized that these measures are crucial for protecting consumers from fraudulent charges.

Katushabe warned that any dealer found continuing this illegal practice will face stringent sanctions. He explicitly stated, “We will close them should we establish that they continue with the illegality.”

These inspections are part of a broader road safety enforcement campaign that also targets vehicles in poor mechanical condition and businesses involved in importing vehicles into Uganda.

Motorists are advised to always demand official receipts and insist on a detailed breakdown of all charges before making any payments to ensure they are not overcharged.

Source: https://nilepost.co.ug/news/368857/govt-warns-car-dealers-over-illegal-clearance-charges