Car dealers operating in Kampala are protesting the government’s automatic Electronic Payment System (EPS), claiming it is punishing the wrong people and threatening the survival of their businesses.
The EPS, introduced to streamline the issuance and payment of traffic fines through electronic ticketing, is facing backlash for what dealers say are serious operational flaws.
Instead of targeting current vehicle owners, the system is reportedly directing fines to the original sellers typically the dealers due to delays in ownership transfers.
This unintended consequence has sparked widespread confusion and fear among both motorists and traders.
Dealers say the system is disrupting business to the extent that many Ugandans are now avoiding vehicle purchases altogether.
“The government needs to revisit this system. If nothing is done, we may be forced to shut down our car bonds,” warned Charles Kamunvi, Chairperson of the Association of Motor Dealers, during a press briefing on Tuesday.
Kamunvi explained that many customers buy vehicles on credit and take months before they can complete the official transfer of ownership. Meanwhile, the EPS continues to link any traffic fines to the dealer’s name, as the registered owner.
“Electronic traffic fines continue to be delivered to dealers long after the cars have been sold, and the constant influx of tickets has disrupted business operations, strained finances, and created legal headaches for many traders,” he said.
Backing the dealers’ position, leaders from the Kampala City Traders Association (KACITA) have also joined the protest, accusing the government of introducing EPS without sufficient preparation or public education.
“The government did not take time to educate people on how this system works. Right now, most traders don’t even know how to continue with their businesses,” said KACITA Chairperson Fadius Musoke.
Musoke also raised concerns about poor road signage and deteriorating infrastructure, which he said make it easy for drivers to unknowingly violate traffic rules and incur penalties.
He and other KACITA leaders are calling for an immediate suspension of the EPS to allow time for comprehensive review and stakeholder consultations.
Issa Sekitto, a KACITA representative and outspoken critic of the current implementation, claims to have personally faced harassment from traffic enforcement officers operating under the EPS.
“Why disrupt the economy when we don’t even have enough number plates in the country?” Sekitto questioned, warning that the system has created fertile ground for corruption.
He added that the high cost of new number plates only adds to the financial strain on car dealers and motorists and should be urgently addressed by the authorities.
The fallout has been particularly harsh for individual dealers. Isaac Barunda, owner of Success Motors, revealed that he has received over 378 electronic traffic tickets via email all for vehicles he no longer owns.
The fines total more than shs134 million.
“Three of my customers who operate Uber businesses have returned their vehicles. One of them was fined shs8.6 million in just three days, yet his vehicle was still under a loan of shs10 million,” Barunda said.
He also disclosed that his Tax Identification Number (TIN) has been blocked due to the unpaid fines — a move that has brought his business to a standstill.
The crisis has not spared international players. Arab vehicle importers operating in Uganda’s car trade sector have echoed the concerns of local dealers and are warning they may pull out of the country entirely if the system is not overhauled.
They argue that the increasingly hostile business environment makes it unsustainable to continue operating under the current framework.
Dealers and their representatives are now demanding the immediate suspension of the EPS and a full government review.
They argue that the continued implementation of the flawed system could lead to a sharp increase in car prices, widespread job losses, and the closure of several businesses across the automotive industry in Kampala.
