Uganda moves to cut out middlemen in vehicle registration system

KAMPALA — The government is weighing sweeping reforms that could phase out car agents and other intermediaries from Uganda’s motor vehicle registration process, in a bid to eliminate delays, reduce hidden costs, and curb alleged exploitation of motorists.

The proposed changes were discussed on Tuesday, May 5, during a high-level meeting convened by Works and Transport Minister Gen Edward Katumba Wamala, bringing together vehicle dealers, clearing agents, officials from the Uganda Revenue Authority (URA), and representatives of the Intelligent Transport Monitoring System (ITMS).

Officials said the reforms are intended to streamline the registration process and address growing concerns that some clearing agents and intermediaries delay procedures after receiving payments from clients, particularly in relation to the issuance of digital number plates.

“We are here to make our system smooth and iron out any shortfalls,” Gen Katumba said. “As stakeholders, feel free to raise areas that need improvement for the new regime of motor vehicle registration and number plate issuance.”

Sources familiar with the discussions indicated that the Ministry of Works and Transport is considering a direct-to-user system, where motorists and vehicle dealers would independently process applications through the Motor Vehicle Registration portal, removing the need for intermediaries.

Commissioner for Transport Regulation and Safety, Winstone Katushabe, attributed a significant portion of the delays to agents who fail to complete required procedures after collecting payments.

“Out of the 77,410 cars that were released, 95 percent of these cars are worked on within eight hours. However, the blame is on clearing agents who fail to complete required processes and deliberately delay their clients for financial gain,” Mr Katushabe said.

He added that some agents mislead clients by claiming shortages of digital number plates or delayed scheduling, even when applications have not been properly submitted.

Official data presented at the meeting showed that more than 1,338 vehicles have remained unprocessed for over two months due to errors in documentation and handling by agents and clearing firms.

Authorities further noted that motorists often incur additional and unjustified costs while waiting weeks or even months for registration and installation to be completed.

Mr Katushabe proposed wider use of the Motor Vehicle Registration portal, allowing vehicle owners to directly track the status of their applications and identify responsible service providers.

The discussions come amid continued public concern over delays associated with Uganda’s digital number plate rollout under the ITMS project.

Mr Joseph Tumwine of ITMS said the company has expanded production capacity at its Kyambogo facility, now producing about 2,500 number plate kits daily with a workforce of more than 300 Ugandans.

He said 84 percent of vehicle registrations are currently completed within 24 hours after payment, with government targeting same-day installation for fully cleared vehicles by the end of the year.

“By the end of this year, a motor vehicle fully cleared for installation will be fitted with a number plate on the same day of application,” officials said.

ITMS further reported that weekly installations now stand at up to 7,500 vehicles nationwide, supported by expanded fitment centres in Gulu and Fort Portal, as well as operational sites in Malaba, Mutukula, Jinja, Masaka, Mbarara, and Arua. Kampala alone operates 26 permanent installation centres alongside mobile units.

The proposed reforms are expected to face pushback from stakeholders in the vehicle clearing industry, where agents have traditionally played a central role in facilitating registration processes.

However, government officials maintain that the changes are necessary to improve efficiency, enhance transparency, eliminate corruption, and restore public trust in the vehicle registration system.