Kampala, Uganda – The Government of Uganda is set to have a significant overhaul of its public transport system, aiming to phase out individual taxi operators in favor of organized associations or Savings and Credit Cooperatives (SACCOs). According to the government, the move seeks to streamline operations of Public Service Vehicles (PSVs), including taxis and buses, particularly in Kampala and upcountry towns.
The policy targets the often chaotic and unregulated taxi sector, where individual operators have long dominated. The move is part of a broader effort to improve service delivery, reduce congestion, and enhance safety standards in Uganda’s public transport system.
One of the common taxi users, Mr. Oketch Samuel with whom Kalisho talked to was excited about the move noting that the reform is “long overdue,” citing the need for a more organized system to address issues like poor vehicle conditions and erratic routes.
Some however, have expressed concern, criticising the policy, stating, “The government looking at taxi drivers like: ‘Wow, self-employment? Independence? Let’s go ahead and cancel that,’” highlighting fears of job losses. Kato Kiguli was quick to question whether this is a genuine improvement in service delivery or “the usual systemic unemployment moves,” reflecting skepticism about the government’s motives.
The Kampala Capital City Authority (KCCA) has been engaging stakeholders to support this transition. The authority has collaborated with the Ministry of Trade, Industry, and Cooperatives to assist in registering taxi SACCOs. KCCA has also suspended certain fees for a month to allow existing SACCOs to regularize their operations, aiming to set standard welfare charges in consultation with industry players.
The reform being prepared mirrors broader trends in East Africa, where governments are reforming public transport to address urbanization, congestion, and safety concerns. Each country, however, has approached the challenge differently, reflecting local contexts and governance structures.
Kenya: SACCOs and Larger Buses
In Kenya, a similar shift began in 2010. The Kenyan government started phasing out minibuses (locally called matatus) in Nairobi, favoring larger buses with a capacity of 25 or more passengers. Matatus are now required to be part of one of over 600 government-registered SACCOs, which regulate operations, enforce safety standards like seatbelts and speed governors, and manage routes. This reform has led to improvements, with companies like Citi Hoppa and Super Metro introducing electric buses in 2022, leased from BasiGo, to reduce emissions. However, challenges remain, as matatu drivers often face pressure to keep moving, leading to fuel wastage and pollution when idling is discouraged.
Kenya’s matatu sector, which handles over 70% of commuter trips in Nairobi, has also become a cultural phenomenon. Despite these reforms, the transition has not been seamless, with some operators resisting the shift to larger buses due to higher operational costs.
Tanzania: Dala Dala and Regulatory Challenges
In Tanzania, the public transport system relies heavily on dala dala, minibus share taxis that emerged as illegal operators in the 1970s due to the decline of government-run services. Prior to 1983, privately owned public transport was illegal in Tanzania. Even after legalization, many dala dala operated without licenses well into the 1990s. The sector remains highly competitive, described in 2002 as operating under “conditions close to classical perfect competition.”
The Tanzanian government, through the Land Transport Regulatory Authority (LATRA), allocates routes, but informal syndicates often control fares and stations. Unlike Uganda’s push for SACCOs, Tanzania has not fully formalized its dala dala system, with some publicly operated dala dala in Dar es Salaam as of 2008. The lack of strict regulation has allowed flexibility but also perpetuated issues like overcrowding and unsafe vehicles, a stark contrast to Uganda’s more structured approach.
Rwanda: Cooperatives and Formalization
Rwanda offers a more successful model of transport reform, as detailed in a 2021 report by the Institute for Transportation and Development Policy (ITDP). In 2011, Rwanda’s Ministry of Infrastructure initiated a public transport policy, formalized in 2012, to reorganize Kigali’s bus system. Minibus owners were encouraged to form cooperatives, which later united under the Rwanda Federation of Transport Cooperatives (RFTC), now the largest bus operator in Kigali. The government supported this transition by providing training and facilitating access to credit and government tenders for public transport contracts.
By 2013, Rwanda had signed five-year contracts with bus operators, leading to safer and more accessible transport. Queuing culture improved, and vulnerable groups gained better access to services. Rwanda’s approach emphasizes capacity building and formalization, offering a potential blueprint for Uganda. However, Rwanda’s smaller size and more centralized governance structure make its reforms easier to implement compared to Uganda’s more fragmented transport landscape.
Key takeaways
Across East Africa, the push to reform public transport reflects the region’s rapid urbanization and the need for sustainable, efficient systems. Uganda’s decision to phase out individual operators aligns with Kenya’s SACCO model and Rwanda’s cooperative framework, but it diverges from Tanzania’s more laissez-faire approach. Each system has its strengths and challenges.
Regulation and Safety: Kenya and Rwanda have made strides in enforcing safety standards through SACCOs and cooperatives, respectively. Uganda’s move could similarly improve vehicle conditions but it risks alienating operators if not paired with adequate support.
Economic Impact: The shift threatens individual livelihoods, a concern echoed in Uganda and Kenya. Rwanda mitigated this by providing training and financial access, a strategy Uganda might consider to ease the transition.
Sustainability: Kenya’s adoption of electric buses points to a future-focused approach that Uganda could emulate, especially given Kampala’s congestion issues. Tanzania’s lack of formalization, however, limits its ability to implement such innovations at scale.
Uganda’s transport reform is a bold step toward modernization, but its success will depend on stakeholder engagement and support for displaced operators. The government’s collaboration with KCCA to regularize SACCOs is a promising start, but many Ugandans are also calling for a robust bus system to complement these changes. Learning from Rwanda’s capacity-building efforts and Kenya’s technological advancements, Uganda has an opportunity to create a balanced, sustainable public transport system—if it can navigate the economic and social challenges ahead.
