KACITA, the Kampala City Traders Association, has voiced strong concerns and called for a comprehensive review of Uganda’s digital number plate project, citing issues ranging from high costs and operational delays to security doubts and a lack of public awareness. The association, a leading multi-sectoral business support organization with over 3 million subscribers, has petitioned Parliament and various ministries, highlighting the negative impacts on businesses and the economy.
Background and Initial Concerns.
In 2023, the Ugandan government, through the Ministry of Works and Transport and the Ministry of Security, initiated a 10-year deal to install digital tracking chips in all automobile number plates registered in the country. This project, operating under the Intelligent Transport Management Systems (ITMS) program, was primarily motivated by security concerns. The initial phase focused on government vehicles to assess the effectiveness of the new digital number plates before extending the implementation to the general public.
In 2023, the Ugandan government, through the Ministry of Works and Transport and the Ministry of Security, initiated a 10-year deal to install digital tracking chips in all automobile number plates registered in the country. This project, operating under the Intelligent Transport Management Systems (ITMS) program, was primarily motivated by security concerns. The initial phase focused on government vehicles to assess the effectiveness of the new digital number plates before extending the implementation to the general public.
However, KACITA raised early alarms, petitioning Parliament, the Ministry of Works and Transport, the Uganda Revenue Authority (URA), and the Ministry of Trade on June 14, 2023. These concerns were further amplified by consultations with various stakeholders, including motor vehicle dealers, importers, bonded warehouse owners, automobile manufacturers, logistics firms, fleet management companies, clearing and forwarding agents, drivers, and riders. Despite these efforts, KACITA claims that many of their concerns remain unaddressed as the implementation moves forward.
Key Issues and Concerns Raised by KACITA.
•High Costs: KACITA argues that the new digital number plates are significantly more expensive compared to neighboring countries. Ugandans are required to pay UGX 150,000 for vehicle replacements and UGX 50,000 for motorcycles, effectively paying twice for the same service. New registrations cost UGX 714,300, while in Kenya, the cost is Ksh 3,000 (UGX 80,000) for vehicles and Ksh 1,500 (UGX 40,000) for motorcycles.
•Security Issues: Despite the advanced technology, there are doubts about the system’s effectiveness. KACITA pointed out that motorcycles stolen in December 2024 have not been recovered, questioning the ability of the digital plates to track lost vehicles.
•Operational Delays: The current system integration is plagued with challenges in payment reflection and reconciliation, causing delays of 3-5 days to fit number plates and additional days to obtain logbooks.
•Limited Capacity and Manpower Shortage: The service provider reportedly lacks sufficient stock of number plate materials, leading to scarcity and business disruptions. The initial plan to establish permanent fitment centers in at least nine bonds has not been fully implemented, and staffing remains inadequate. Additionally, customer care representatives lack adequate knowledge of the project, complicating the process for the public.
•Payment Structure Issues: The system requires upfront payment, disregarding hire purchase and installment arrangements, which violates established financial agreements in the transport sector.
•Lack of Public Awareness: KACITA noted that the public remains largely uninformed about the new process, its costs, and regulations, potentially leading to confusion and widespread outcry.
•Unverified Project Facilities: The manufacturing plants and border entry point facilities have not been publicly showcased, raising doubts about their existence and functionality.
Call for a Total Review.
Thadeus Musoke Nagenda, the chairman of KACITA, has emphasized that many members dealing in motor vehicle and motorcycle businesses are complaining that the system is not operating well. He added that the bureaucracy within the system is excessive, making the digital number plates very expensive and unfriendly to buyers of new vehicles and motorcycles.
Thadeus Musoke Nagenda, the chairman of KACITA, has emphasized that many members dealing in motor vehicle and motorcycle businesses are complaining that the system is not operating well. He added that the bureaucracy within the system is excessive, making the digital number plates very expensive and unfriendly to buyers of new vehicles and motorcycles.
Marvin Ayebale, the publicity secretary of the Association of Motor Dealers, stated that the government has been given only one month to revisit the system and sensitize the public before rolling it out again.
He also noted that the project is not ready to handle the number of vehicles entering the country, causing significant losses and a slowdown in business for car dealers.
KACITA is advocating for the costs of the new digital number plates to remain the same as the current number plates, or, if an increase is justified, not to exceed Shs200,000 to keep the costs within reach of average Ugandans.
Government Response and Justifications.
Suzan Kataike, the spokesperson for the Ministry of Works and Transport, mentioned that KACITA petitioned parliament in 2023 regarding the cost of the digital number plates, and an explanation was provided on how the ministry arrived at the cost. She acknowledged the need for more sensitization and stated that efforts would continue in different parts of the country.
Suzan Kataike, the spokesperson for the Ministry of Works and Transport, mentioned that KACITA petitioned parliament in 2023 regarding the cost of the digital number plates, and an explanation was provided on how the ministry arrived at the cost. She acknowledged the need for more sensitization and stated that efforts would continue in different parts of the country.
The government has emphasized that the digital number plates are aimed at monitoring traffic flow, identifying and tracking vehicles, and detecting incidents in real-time. Security Minister (Rtd) Maj Gen Jim Muhwezi confirmed that the production line for these number plates has been established in Kampala and that the government is ready to meet the domestic demand for over 2.2 million vehicles.
Privacy Concerns:
Beyond KACITA’s concerns, the rollout of the digital number plate system has raised alarms among rights activists due to the introduction of massive personal data collection and processing amidst weak controls. The Uganda Police plan to integrate the digital number plate system with the Closed Circuit Television System (CCTV), the motor vehicle registration system, the e-tax system managed by the Uganda Revenue Authority (URA), and the national identity database managed by the National Identification and Registration Authority (NIRA). This integration aims to ensure comprehensive vehicle and personal identification. However, the absence of clear data-sharing frameworks and robust controls, coupled with the lack of a law or regulations governing CCTV/video surveillance, poses grave concerns.
Beyond KACITA’s concerns, the rollout of the digital number plate system has raised alarms among rights activists due to the introduction of massive personal data collection and processing amidst weak controls. The Uganda Police plan to integrate the digital number plate system with the Closed Circuit Television System (CCTV), the motor vehicle registration system, the e-tax system managed by the Uganda Revenue Authority (URA), and the national identity database managed by the National Identification and Registration Authority (NIRA). This integration aims to ensure comprehensive vehicle and personal identification. However, the absence of clear data-sharing frameworks and robust controls, coupled with the lack of a law or regulations governing CCTV/video surveillance, poses grave concerns.
Conclusion:
KACITA’s call for a total review of the digital number plate project reflects widespread concerns about costs, operational inefficiencies, security effectiveness, and public awareness. The association’s advocacy highlights the need for the government to address these issues, ensure transparency, and consider the impact on businesses and the general public. As the project moves forward, it remains crucial for the government to engage with stakeholders, conduct thorough sensitization campaigns, and establish robust data protection measures to safeguard citizens’ privacy rights
KACITA’s call for a total review of the digital number plate project reflects widespread concerns about costs, operational inefficiencies, security effectiveness, and public awareness. The association’s advocacy highlights the need for the government to address these issues, ensure transparency, and consider the impact on businesses and the general public. As the project moves forward, it remains crucial for the government to engage with stakeholders, conduct thorough sensitization campaigns, and establish robust data protection measures to safeguard citizens’ privacy rights