KACITA Uganda Raises Concerns Over the Implementation of Digital Number Plates

KACITA Uganda, the country’s leading multi-sectoral business support association with over 3 million subscribers, has expressed serious concerns over the ongoing implementation of the digital vehicle registration system by Global Security.

The new number plate system, initially set to launch in July 2023, was postponed due to various challenges, including lack of preparedness and failure to justify its value beyond security. Despite recommendations made to address these issues, many remain unaddressed as implementation moves forward.

KACITA Uganda had earlier petitioned Parliament, the Ministry of Works and Transport, the Uganda Revenue Authority (URA), and the Ministry of Trade on June 14, 2023, highlighting key concerns about the project. Additionally, a request to meet the Minister of Security on September 7, 2023, to follow up on recommendations received no response.

Through consultations with key stakeholders, including motor vehicle dealers, importers, bonded warehouse owners, automobile manufacturers, logistics firms, fleet management companies, clearing and forwarding agents, drivers, and riders, KACITA has identified several issues affecting businesses and the economy.

Key Concerns Raised by KACITA Uganda:

  • Security Issues: Despite the introduction of digital plates, motorcycles stolen in December 2024 have not been recovered, raising doubts about the system’s effectiveness in tracking lost vehicles.
  • Operational Delays: The current system integration faces challenges in payment reflection and reconciliation, causing delays of 3-5 days to fit number plates and additional days to obtain logbooks.
  • Limited Capacity: The service provider lacks sufficient stock of number plate materials, leading to scarcity and business disruptions.
  • Manpower Shortage: The initial plan for permanent fitment centers in at least nine bonds has not been implemented, and staffing remains inadequate. Additionally, customer care representatives lack adequate knowledge of the project, further complicating the process for the public.
  • Payment Structure Issues: The system requires upfront payment, disregarding hire purchase and installment arrangements, which violates established financial agreements in the transport sector.
  • Lack of Public Awareness: The suspension of the project in July 2023 was partly due to inadequate sensitization. However, the public remains largely uninformed about the new process, its costs, and regulations, potentially leading to confusion and widespread outcry.
  • Unverified Project Facilities: The manufacturing plants and border entry point facilities have not been publicly showcased, raising doubts about their existence and functionality.
  • High Costs: The new digital number plates are significantly more expensive than those in neighboring countries. Ugandans must pay UGX 150,000 for vehicle replacements and UGX 50,000 for motorcycles, effectively making them pay twice for the same service. New registrations cost UGX 714,300, compared to Kenya’s Ksh 3,000 (UGX 80,000) for vehicles and Ksh 1,500 (UGX 40,000) for motorcycles.

KACITA Uganda calls upon the government to urgently address these concerns to prevent further disruptions in the business sector and unnecessary financial burdens on Ugandans. The association remains committed to advocating for fair policies that support businesses and economic growth.