Police said five other people were rushed to the hospital after they were seriously hurt in the 7am crash.
The crash involved a Toyota Hiace taxi registration number UBM 489B and a Mercedes Benz registration number UAM445B Mercedes Benz. Police also say these were both moving from Kampala side to Masaka District side.
According to her, the deceased whose identities have not been established yet include three females and two males who were in taxi.
The five survivors they are yet to identify occupied the Benz. They rushed them to Nkozi Hospital for treatment.
Mbarara-Masaka-Kampala road has remained one of the accident-prone highways in the country, registering between 200 and 300 fatalities annually.
The Boxing Day crash comes barely a week after another crash on the same road claimed the lives of people.
The crash involving a bus Reg. No. UAW 561P belonging to Global Coaches and a saloon car Toyota Corolla Fielder Reg. No. UBL 270S happened at Nabusanke Trading Centre in Kayabwe at 11am on December 18.
The driver of the Fielder and two occupants (female adults) died on spot while one died on the way to Nkozi Hospital.
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