Ugandan Car Dealers Decry Delays and High Costs in Digital Number Plate Rollout

Frustration is growing among Ugandan car dealers as the country’s digital number plate project faces major setbacks. Designed to modernize vehicle identification, the initiative has been plagued by delays, supply shortages, and concerns over its security effectiveness.

Dealers cite implementation issues as the primary cause of disruption. “It takes three to five days just to get number plates fitted,” a Kampala-based dealer revealed anonymously. “Payment reconciliation problems are slowing everything down, and obtaining logbooks is an even bigger challenge, creating a major backlog.”

The inefficiencies stem from a payment system that lacks proper integration, leading to frequent processing delays. Adding to the frustration, dealers report that the service provider is struggling to maintain a steady supply of number plate materials, further disrupting operations. “We keep running out of stock because the provider cannot meet demand,” another dealer lamented.

Manpower shortages and inadequate training have worsened the situation. Plans to establish permanent fitting centers at bonded warehouses remain unfulfilled, while existing staff are overwhelmed. Customer service inefficiencies have only deepened public dissatisfaction. “Customer care representatives are clueless about the project,” a dealer complained. “They can’t even answer basic questions.”

The project’s payment structure has also drawn criticism. Requiring full payment upfront—without options for hire purchase or installment plans—clashes with industry norms. “This system is completely detached from how the automotive industry functions,” one dealer pointed out. “Many Ugandans rely on hire purchase agreements, which this system ignores.”

Security concerns have further eroded trust in the initiative. Despite the introduction of digital plates, motorcycles stolen in December 2024 remain unrecovered, raising doubts about the system’s effectiveness. “If these plates can’t even help recover stolen vehicles, what’s their purpose?” a dealer questioned.

A lack of public awareness is another major issue. The project was suspended in July 2023 due to inadequate sensitization, yet many Ugandans remain uninformed about the new procedures, costs, and regulations. “There has been no proper public education campaign,” a dealer noted. “People don’t understand how it works.”

Additionally, the high cost of digital plates compared to neighboring countries has fueled widespread frustration. Ugandans are required to pay 150,000 Ugandan shillings for vehicle replacements and 50,000 shillings for motorcycles, effectively paying twice for the same service. Meanwhile, new vehicle registrations cost 714,300 shillings—significantly higher than Kenya’s rates.

Car dealers are now calling on the government to address these challenges, urging greater transparency, efficiency, and affordability in the digital number plate rollout.

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