Uganda: Govt Warns Car Dealers Over Illegal Clearance Charges

4 September 2026
Nile Post (Kampala)
By Sirajje Kiberu

The Ministry of Works and Transport has intensified its crackdown on car dealers in Kampala accused of imposing illegal and exorbitant clearance fees on customers importing vehicles into Uganda.

The ministry says some car bond operators are charging motorists between Shs800,000 and Shs2 million, despite the approved clearance-related charge being Shs714,300.

The crackdown follows complaints raised by Members of Parliament, prompting Commissioner for Road Safety Winston Katushabe to lead a team of ministry officials in unannounced inspections at several car bonds in Kampala.

According to the ministry, the inspections uncovered cases where customers were allegedly being asked to pay additional money disguised as clearance fees.

Keep up with the latest headlines on WhatsApp | LinkedIn

Commissioner for Road Safety Winston Katushabe said the ministry will not allow car dealers to exploit motorists through unexplained charges.

"The approved charges are 714,300 shillings, but some dealers are increasing these charges to between 800,000 and two million shillings, claiming the money is for clearance, when it is not," Katushabe said.

The ministry has directed car bond operators to prominently display the approved fee structure at their premises so that customers can know exactly what they are required to pay.

Officials say the move is intended to improve transparency and protect motorists from being charged fees that are not authorised.

Katushabe warned that dealers who continue with the practice will face tough sanctions, including closure of their businesses and cancellation of their operating licences.

"We will close them should we establish that they continue with the illegality," Katushabe warned.

The ministry says inspections of car bonds will continue as part of a wider road-safety enforcement campaign targeting not only vehicles found in dangerous mechanical condition but also businesses involved in bringing vehicles onto Ugandan roads.

Car buyers have been urged to demand official receipts and insist on a clear breakdown of all charges before making payments.

The ministry says any dealer found violating the approved fee structure will be subjected to sanctions.

Read the original article on Nile Post.

Tagged:
Copyright © 2026 Nile Post. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.