Kampala, Uganda — Transport fares in the city have raised too high following increased number of people travelling to upcountry districts ahead of Christmas.
During an interview with East African Business Week in Kampala last week, Mr. Hussein Bbale a driver at Kalita group of Companies one of the western region based travel companies said the hiked rate has been engineered by an increase in demand for the service.
He said the fares are determined by the forces of demand and supply.
Bbale said that many people are travelling and this means drivers put extra efforts to make return journeys and thus they are rewarded by an increase in payment.
He claims that an increased rate also compensates for the loss incurred while travelling to Kampala since many buses are now leaving up country with only a few passengers.
Most buses and taxis have increased and others doubled their fares in order to benefit from the season.
Bbale explained that businessmen are flooding Kampala from the country side to buy goods in order to cater for increased demand as people prepare for the festivities.
Travelling from Kampala to Fort Portal, buses charge between Ush 40000 ($15) and Ush 50000 ($19) from Ush 20000 ($7.5) while taxis (minibuses) charge about Ush 35000 ($13) from Ush 18000 ($7).
Fares to Moroto have increased from Ush 40,000 to Ush55000 ($21).
Hikes according to Godfrey Tabbu a conductor of Gateway Coaches one of the bus companies in the country attributes it to increasing fuel prices as some of the oil traders have started hoarding fuel in order to sell it expensively later.
However, fares from upcountry to the city center have remained constant as only a few people mainly business men are travelling to Kampala.