The Kampala City Traders Association (KACITA) warns that chronic shortages and high costs of digital vehicle number plates are crippling dealers and eroding public confidence in the automotive trade.
While appearing before the Committee on Physical Infrastructure chaired by Hon. Mwine Mpaka, KACITA Chairperson, Issa Sekitto expressed deep skepticism about the production capacity of the current service provider under the Intelligent Transport Monitoring System (ITMS).
He added that they are not confident that the contractor can maintain adequate stocks of vehicle numbers plates and manufacturing materials.
“The delays are not occasional inconveniences; they are systematically destroying our businesses. Customers place orders, pay deposits, and then wait weeks or months. Many walk away. Dealerships are losing both sales and reputation,” he said.
The association singled out the Shs714,300 fee for new digital plates as particularly burdensome for both dealers and buyers arguing it inflates the cost of vehicles at a time when businesses are still recovering from economic pressures.
The digital number plate programme, rolled out as part of a broader security-driven ITMS initiative, aims to enhance vehicle tracking, curb theft and improve law enforcement through embedded technology.
The project is implemented through a long-term partnership involving the Ministry of Works and Transport and security agencies, with plates produced by a contracted service provider.
Hon. Mwine Mpaka pressed the traders for concrete evidence of the supply failures.
“We cannot ignore the lived experience of the business community,” Mpaka said adding that, ’if the system meant to improve security is instead paralysing legitimate trade, then Parliament has a duty to demand answers and solutions. Capacity, cost and reliability must all be addressed’.
Ayivu East MP, Hon. William Taylor (said that prolonged delays risk pushing more transactions into informal channels.
“Another question should be whether the pricing structure adequately balances the project’s security objectives with affordability for citizens and the private sector,” he said.
Members also sought clarity on contingency plans for stock outs and the contractor’s ability to scale production.
The association maintains that while it supports measures that enhance national security and road safety, the current operational bottlenecks undermine those very goals by frustrating vehicle registration and sales.
The committee is expected to summon the implementing agencies and the service provider for further scrutiny.
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