Uganda courier industry faces crisis of trust amid rise of informal operators

KAMPALA, Uganda — A crisis of trust is eroding Uganda’s courier industry as unlicensed operators now command 60 percent of the market, according to data from Posta Uganda.

The surge in informal delivery services, driven largely by boda-bodas and commuter taxi networks, has left the nation’s 56 regulated firms struggling to compete against a shadow economy that bypasses consumer protection standards. Industry leaders warn that while these unregulated services offer immediate convenience, they lack the accountability essential for long-term sector stability.

Patrick Omulo, chairman of the Courier Industry Association of Uganda, said the proliferation of informal players threatens the core values of the profession.

The courier industry relies on speed and trust, said Omulo, who also serves as head of business at SGA Courier Uganda. When packages are delayed or lost and there is no formal way to resolve the problem, the public loses confidence in legitimate companies.

Since the 1990s, the sector has expanded from a single state-run entity to dozens of regulated players. However, only 40 percent of current market activity remains within the licensed framework. The ease of hailing a delivery via a simple phone call or text to an unlicensed rider has created a significant regulatory gap.

Fred Otunnu, director of corporate affairs at the Uganda Communications Commission, said the current landscape requires an urgent policy shift. Speaking at the Annual Postal and Courier Engagement in Kampala, Otunnu noted that modern logistics must evolve beyond simple transportation to include digital transparency and cost efficiency.

You can’t have a resilient logistics sector without accountability, Otunnu said. He challenged licensed providers to bridge the gap by embracing e-mobility and mobile applications to mirror the accessibility of ride-hailing services.

While some formal firms are beginning to integrate these technologies, Omulo argued that innovation alone is insufficient. He called for comprehensive legal reforms to ensure that Uganda’s regulatory framework keeps pace with the rapid growth of digital and informal delivery networks.

The current legal framework may not adequately cover these challenges, Omulo said, emphasizing that the industry’s survival depends on harmonizing the supply chain to protect both operators and consumers.