The Kampala Capital City Authority (KCCA) has so far impounded over 100 taxis operating in the city, whose owners have not paid the monthly charge of sh120, 000.
Some of the taxis are parked at the KCCA headquarters at City Hall, where the owners have been picking them after clearing the monthly fees.
KCCA started the crackdown on taxis about a week ago, and the operation targets taxi operators who have defaulted for more than two months.
KCCA spokesperson, Peter Kaujju said the operation was also targeting those who have skipped months without paying the fees.
"We expect all taxis to have started paying the monthly charges. Those who have been skipping months or not paying at all are advised to clear the fees," he said.
In February last year, KCCA introduced a new payment system that required taxi operators to pay a monthly fee of sh155,000 for taxi operators, shortly after taking over management of the city's public transport from the Uganda Taxi Owners and Drivers Association (UTODA).
The amount was later reduced to sh120, 000, following protests from some taxi operators who complained that it was high. Taxi operators were also required to pay through the bank, instead of UTODA agents in the taxi parks.
Previously, the drivers paid a sh4, 500 daily receipt fee and a sh20, 000 monthly sticker fee, in addition to welfare fees.
The leaders of drivers' associations led by the Drivers and Conductors Central Association (DACCA) and the National Union of Taxi Operators (NUTO) have been locked in meetings to discuss the fees.
DACCA chairperson, Mustapha Mayambala said the drivers' associations want the monthly fee reduced further to sh70, 000, a move that KCCA has opposed.