Transport Fares Rise Sharply As Bus Strike Enters Day 3

At all the six city bus terminals of Global, Kisenyi, Namayiba, Link, Tausi and Kalita, many travellers could be seen with their luggage, wondering what to do next.

For some, the option of boarding one of the few available 14-seater taxis or 30-seat coasters was a possible option. However, this would come at a cost.

Taxi operators have quickly taken advantage of the unfolding transport emergency to double their fairs. In some cases, they triple their fares, leaving those who cannot afford the new rates stuck.

An affected traveler, Mr Brian Ogwok, who was traveling to Lira District, decried the sudden spike in transport fares.

“The taxi operators have now taken advantage of the fact that bus operators are on strike. They are exploiting travelers who are desperate to travel. Something should be done by the authorities,” Mr Ogwok said.

But in Uganda’s very liberalized economic environment where the forces of demand and supply determine prices, Mr Ogwok’s hope of an intervention is slim.

Mr Rashid Ssekindi, the chairperson of Uganda Taxi Operators Federation (UTOF), added that with scarcity, demand is always high and hence determines the prices.

“What causes the hike in transport fares is the many people seeking these services. Each time people are many, the vehicles in the parks will not be enough. So, the remaining few operators may hike fares because of monopoly,” Mr Ssekindi said.

The federation, he said, has tried to advise its members to be considerate to little avail. Mr Ssekindi proposed that “the passengers should resist paying hefty transport fares”, something that is practically impossible.

As the strike enters its third day today, bus operators maintain that something must be done about the operations costs.

They point to what they say is a lot of money paid in fees to Kampala Capital City Authority (KCCA). Then there is Uganda Revenue Authority (URA), and the owners of the bus terminals.

The decision to suspend services by the Uganda Bus Owners Association (Uboa) was taken shortly after KCCA enforcement teams locked YY Bus Terminal, accusing the company of defaulting on parking fees.

Under a new law, KCCA levies an annual charge of Shs2.4 million per bus. Operators are also required to pay the central government Shs2.84 million per bus. Shs1.5 million of which goes towards the Passenger Service Vehicle license and Shs1.34 million as Advance Income Tax to URA. On top of that, bus operators said they pay at least Shs50,000 to the bus terminal owners each time they exit.

In a letter dated February 23 to the Speaker of Parliament, bus operators requested the government to abolish the annual Park User Fees.

This is currently Shs2.4 million per bus. He also asked them to set up bus terminals to be managed by Uboa. The proposal Uboa suggested was for “all the taxies/levies for acquiring a license [to] be combined into a [single] fee of Shs1,840,000 per bus, to apply as a total and final annual [payment] to government”.

Other proposals were for the government to streamline routing to protect operators on long routes. Uboa also wants touts, who demand a separate commission for loading, banned from the parks.

As commuters suffer under the weight of out-of-control fares being charged by taxi operators. By last evening, no immediate solution was in sight.

Mr Simon Kasyate, the KCCA public relations officer, waved the law when reached for comment, pointing out that KCCA is only enforcing what the law says.

Mr Ben Kumumanya, permanent secretary at the Local Government ministry, yesterday told Monitor he has scheduled a meeting with bus owners today.

Source: Monitor

Check Also;

• Public Transport Operators Disappointed By Gov’t Reluctance On Policy
• Uganda Turning To Electric Buses For Public Transport
• Government Finalizes Plans For Assembling Buses In Uganda