Digital number plate delays leave vehicles stranded across Uganda

• Many vehicles remain grounded due to delays in issuing ITMS digital number plates.

• Shortages of tracking components and system bottlenecks have slowed vehicle registration.

• Dealers, transport operators and e-mobility firms face mounting storage costs and lost revenue.

• Government plans to decentralise installation centres and maintain larger buffer stocks.

Uganda’s automotive and transport sectors are facing an invisible roadblock that is grounding billions of shillings in capital, frustrating motorists, and slowing the country’s economic momentum.

The culprit is not a lack of demand, nor a shortage of vehicles. Instead, it is a bureaucratic bottleneck at the Ministry of Works and Transport and its digital number plate contractor under the Intelligent Transport Monitoring System (ITMS).

Across bonded warehouses, car dealerships, and electric vehicle distribution centres in Kampala, thousands of newly imported or locally assembled vehicles are sitting idle.

Motorists are paying for vehicle registration months in advance, yet they are left stranded with brand-new machines they cannot legally drive on public roads.

The transition to high-tech vehicle tracking was presented as a seamless leap into a “smart city” future. Instead, it has become a nightmare for transport operators, multinational logistics firms, and ordinary citizens.

The primary cause of the current gridlock is a severe shortage of essential physical and digital components required for the ITMS rollout. Under the mandatory guidelines, every newly registered vehicle must be fitted with a digital plate equipped with a tracking device and a Bluetooth beacon.

However, the contractor, Joint Stock Company Global Security, has repeatedly run out of stock of these critical components.While the Ministry of Works and Transport has cited global supply chain disruptions, including shipping reroutes caused by instability in the Middle East, business owners argue that this points to poor buffer stock management.

Because the registration system is heavily centralised, a shortage of a single tracking microchip in a Kyambogo assembly line can leave a car buyer in Malaba or a motorcycle fleet operator in Kampala unable to operate.

Applications processed through the URA and ITMS online portals often remain stuck in “booking status” for weeks, leaving owners uncertain about when their plates will be issued and fitted.

To understand the frustration across the transport industry, one only needs to compare the current system with the previous arrangement.

The old system: Vehicle registration was decentralised, competitive, and fast. When a customer purchased a vehicle or motorcycle from a bond or local distributor, the number plate effectively came with the machine. Service providers such as GM Tumpeco could process and deliver physical plates within 24 to 48 hours.

Buyers paid their fees, cleared customs, and drove away legally on the same day.

The current ITMS system: Today, motorists must order and pay Shs 714,300 for a digital number plate before completing the vehicle release process. Despite this advance payment, processing times have slowed sharply. Vehicles often arrive at the owner's premises while the number plate remains stuck in the system. Owners are left with expensive assets that they cannot legally operate on public roads.

The crisis is affecting not only private motorists but also Uganda’s commercial transport and e-mobility sectors.

Bajaj, TVS Yuvraj, Honda by Markh, Simba Automotive, Haojue, Kevla and major vehicle dealers: Traditional automotive firms are seeing inventories pile up. Car bonds near the Spear Motors traffic lights and elsewhere in Kampala report congestion as sold vehicles await number plates before delivery.

Spiro Uganda, Mocco, Gogo, Zembo, Kevla and others: The e-mobility sector has expanded rapidly, but industry sources say thousands of electric motorcycles remain parked at distribution centres and bonds. The motorcycles are assembled, tested, and ready for deployment, yet delays in number plate issuance keep them off the road.

Ride-hailing networks: SafeBoda, Uber, UnionApp, Faras and other platforms depend on a steady flow of compliant riders. Delays in motorcycle registration are preventing thousands of young people from joining the workforce.

The inefficiencies are translating into major losses for businesses.Vehicle arrives at bond → Advance plate fee paid → Component shortage delay → Daily demurrage charges accumulate → Business revenue lostCar dealers and importers face mounting demurrage and storage costs.

Bonded warehouses charge daily fees for every vehicle occupying space. If a commercial truck or public transport vehicle remains stuck for weeks awaiting a number plate, dealers can lose millions of shillings in storage charges, eroding profit margins.

Entrepreneurs who finance vehicles through bank loans must begin servicing interest payments before the vehicles generate revenue. This slows business growth and weakens investor confidence in Uganda’s transport and logistics sector.

Over the years, the Minister of Works and Transport has convened stakeholder meetings to assess the challenges. However, concerns persist over delays in issuing number plates. While ministry officials often point to documentation errors by clearing agents, concerns about the ITMS supply chain remain.

In response, the government has directed Joint Stock Company Global Security to decentralise operations. Plans are under way to establish between 20 and 24 regional installation centres to reduce the need for motorists to travel to Kyambogo for fitment services.

The ministry has also directed the contractor to maintain a permanent three-to-four-month buffer stock of digital plate components to reduce the impact of global shipping disruptions.

Ugandans have complied with the new system by paying registration fees in advance. Concerns arise when those payments are made but the corresponding plates are not delivered within a reasonable timeframe.

If Uganda aims to build a modern, competitive and digitised economy, its logistical systems must function efficiently. The country cannot attract multimillion-dollar e-mobility investments while delays prevent vehicles from reaching the road.

The Ministry of Works and Transport and ITMS operators need to streamline processes, decentralise services, and ensure that paid-for number plates are delivered when vehicles are ready for use. Uganda’s economy cannot afford prolonged delays.