Zawadi Services Ltd, a bus company operating in the Greater Madi sub-region, has appealed to President Yoweri Kaguta Museveni for a Shs1.7 billion bailout, saying its financial difficulties have put 42 jobs and regional transport services at risk.
The company said its closure would affect passengers travelling to Kampala, Moyo, Yumbe and Arua, as well as parents transporting children to schools and vulnerable patients travelling to Mulago Hospital.
Zawadi Services also said it provided free transport support to the Mulago Cancer Institute during the 2020 COVID-19 lockdown and occasionally transported residents attending presidential addresses in the Madi sub-region at fuel-refund costs.
The company said 42 employees could lose their jobs if operations cease. It added that several workers have outstanding salary arrears but have continued working despite the company's financial difficulties.
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The appeal follows a directive by Stanbic Bank for the company to park its remaining buses as efforts continue to recover part of an outstanding loan.
In a statement issued on Monday, the company said it accumulated debts following the COVID-19 lockdowns in 2020 and 2021, which restricted transport operations for approximately 12 months.
Zawadi said it borrowed Shs2.857 billion from Stanbic Bank in 2019 to acquire eight buses. According to the company, interest and arrears accumulated during the lockdowns, pushing its outstanding obligation to more than Shs4 billion at the time.
The company said it subsequently repaid Shs5.743 billion between 2019 and 2025 but currently owes approximately Shs1.7 billion in principal, excluding VAT.
Zawadi said it sold seven buses in 2025 to reduce its debt burden, but the bank has now directed it to park the remaining buses and recover part of the outstanding loan through their sale.
The company said that even after the sale of the four buses financed through the bank, it would still face a balance of about Shs900 million.
Christine Aber, an accountant who joined Zawadi in 2009, said the company had enabled her to advance from a diploma to a bachelor's degree in accounting.
Aber, a single mother, said she had also been supporting her first-born child at university through her earnings from the company.
"I paid for my fees. My first-born is at the university, and I have been paying for him through support from Zawadi Services Limited. When we got the news, we were stranded. Where do I start life from?" she said.
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Lawrence Logi, a senior booking clerk who said he has worked with the company for 18 years, described the news as devastating.
"When I heard this news this morning, I was devastated because this was my only source of income," he said.
Logi said the company's closure would affect residents across the Madi sub-region, particularly those who rely on its buses for affordable transport.
The company is asking President Museveni to provide the Shs1.7 billion bailout and waive the corresponding VAT.
Zawadi said the intervention would enable it to settle its bank obligation, resume operations, clear outstanding staff salaries and NSSF obligations, and continue meeting its tax obligations.
The company said it remains hopeful that the government will support what it describes as a genuine business that has contributed to the local economy and the transport sector.
