Authorities have ordered the transport company to relocate its operations from the Bus Park to the Kabale Taxi Park.
The decision follows a contentious meeting held on Thursday between the authorities, Cross Country Transport Company, and leaders of the Kabale District Taxi Operators and Drivers Cooperative Union.
The conflict began after Cross Country Transport Company, which offers services to Kabale town and Kigali in Rwanda, expanded its operations.
This expansion sparked discontent among local taxi drivers, culminating in a dramatic standoff on June 10, 2024.
On that day, taxi drivers vacated their park adjacent to the Bus Park and obstructed the company's drivers from loading passengers or departing the area.
The situation escalated quickly, with heated exchanges between the two groups until security authorities intervened and ordered both factions to stand down pending further investigation.
Kabale Resident District Commissioner, Godfrey Nyakahuma, explained the rationale behind the relocation decision.
"After thoroughly examining the situation, we found that Cross Country Transport Company and the local taxi drivers essentially provide the same services. There were no valid reasons for the company to operate outside the Taxi Park and not adhere to the taxi body rules," Nyakahuma told our reporter.
The authorities believe that this move will harmonize operations and reduce friction between the competing transport services.
"Integrating Cross Country Transport into the Taxi Park under the same regulatory framework as other taxi operators is the fair and logical step," Nyakahuma added.
As the relocation is enforced, both the company and local taxi drivers are expected to adjust to the new operational dynamics within the Kabale Taxi Park.