Govt Warns Car Dealers Over Illegal Clearance Charges

What the report says

The Ministry of Works and Transport has warned car bond operators in Kampala that they could face closure and licence cancellation over allegations of charging motorists illegal and excessive vehicle-clearance fees. According to Nile Post, the ministry says some dealers are asking customers to pay far above the approved clearance-related charge of Shs714,300, with reported demands ranging from about Shs800,000 to Shs2 million.

The warning follows complaints raised by Members of Parliament, after which Commissioner for Road Safety Winston Katushabe led ministry officials on unannounced inspections at several car bonds in the city. The ministry said those checks found instances where customers were allegedly told to pay extra money presented as clearance fees. Officials said the practice undermines transparency and can leave car buyers unaware of what they are actually required to pay.

Katushabe said the government would not tolerate dealers who exploit motorists through unexplained charges. The ministry has directed operators to visibly display the approved fee structure at their premises and urged buyers to request official receipts and a clear breakdown of all payments. Inspections are expected to continue as part of a broader enforcement effort covering road safety and vehicle-related compliance. In general, such measures are aimed at improving consumer protection and enforcing official fee schedules, though the specific actions reported here are those outlined by the ministry and published by Nile Post.