Car dealers frustrated over delays in issuance of digital number plates

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Car dealers and importers are increasing pressure on the government over persistent delays in the release of digital number plates, warning that the inefficiencies are crippling operations and eroding confidence in the sector.

The government-managed digital number plate system was introduced by the works and transport ministry, with each number plate costing sh714,000 – sh720,000.

While the system was designed to enhance vehicle security and modernise registration, dealers say its implementation has instead created a costly and frustrating bottleneck.

Al Malik, a leading importer and the chairperson of Car Importers in Uganda, and proprietor of Al Malik Group of Companies, described the situation as unsustainable.

“This is no longer a small inconvenience, it is a systemic failure. We have fulfilled all requirements, paid taxes, and cleared vehicles, but we cannot release them because number plates are not available."

He further claimed that the process has been infiltrated by unofficial payments, effectively turning the issuance of number plates into a parallel commercial enterprise.

“It is a fact that number plates have become a business. We are forced to pay between sh150,000 and sh200,000 on top of the official fee just to get plates. Without facilitation, you can wait for weeks,” Malik said.

According to Malik, the cost of acquiring number plates has risen sharply compared to the previous system.

“We are now paying sh714,000, which is about sh550,000 more than what we used to pay before digital plates were introduced, almost five times more. Yet the service delivery is not even 10% of the value we are getting."

Malik added that even after completing documentation, dealers are forced to wait between seven and ten days, which Malik says is unacceptable in a fast-moving business environment.

“If you don’t pay the extra money, you are pushed to the back of the queue. Meanwhile, our clients are threatening legal action, involving police, and demanding their vehicles because they have already paid,” he said.

The growing frustration has now drawn in organised industry pressure. The Delight Car Dealers Association Uganda Limited is demanding an urgent meeting with President Yoweri Museveni to ensure that these bottlenecks are solved.

Association members argue that the situation has gone beyond administrative delay and now threatens the survival of legitimate businesses.

Minister of Works and Transport, Gen. Katumba Wamala, has since acknowledged the delays, attributing them to high demand, system upgrades, and transitional challenges linked to the rollout of the digital number plate system.

Local production line

The government came up with digital number plates as austerity to strengthen national security through incorporating tracking features intended to support law enforcement and curb vehicle-related crime.

The system is centrally managed to prevent fraud and ensure uniformity. However, state officials have admitted that the transition has faced logistical and technical challenges, resulting in a growing backlog.

“We recognise the concerns raised by stakeholders. Government is working to streamline processes, expand capacity, and ensure timely issuance of number plates,” Katumba recently said.

Despite these assurances, dealers say the response has been slow and insufficient.  Malik is now proposing a long-term solution that should involve localised production of digital number plates.

“As stakeholders, we are ready to partner with the government to establish a production line for digital number plates here in Uganda. This would reduce delays, create jobs, and eliminate unnecessary bottlenecks in the system."

The dealers have notified the government of a possibility that ripple effects could extend beyond car dealerships to impact banks, insurance companies, and government tax revenues tied to vehicle imports.