BALAAM SCRAPS BODA BODA STAGE CHARGES, URGES RIDERS TO FORM SACCOs AS FUEL COSTS REMAIN A CONCERN

By Octavius Tunanukye | BFM Radio-Bushenyi

The Minister for Local Government, Hon. Balaam Barugahara, has announced the immediate scrapping of boda boda stage charges across Uganda, in a move aimed at reducing the financial burden on motorcycle taxi operators.

Balaam made the announcement on November 7, 2026, during his anti-corruption inspection tour at Kabwohe Main Stadium in Sheema District, saying the directive follows President Yoweri Kaguta Museveni's commitment to protect boda boda operators from unnecessary charges.

The Minister also urged motorcycle owners and operators to organise themselves into Savings and Credit Cooperative Organisations (SACCOs) to benefit from President Museveni's financial support programmes and strengthen their economic independence.

He said the President had pledged to support the riders in building savings and transforming the informal transport business into a platform for wealth creation as part of the broader poverty-eradication agenda.

The proposed intervention builds on Museveni's UGX 10.2 billion financing initiative launched in September 2025, targeting 102 boda boda SACCOs across Kampala, Wakiso and Mukono. Each recognised SACCO received UGX 100 million as a revolving fund to facilitate access to affordable motorcycle financing.

Under the arrangement, loans attract an annual interest rate capped at six per cent, while beneficiaries are expected to acquire motorcycles at prevailing market prices.

However, the proposed interventions have also drawn attention to the wider economic challenges affecting boda boda operators, particularly the rising cost of fuel, motorcycle maintenance and spare parts.

Fuel expenditure remains a significant component of daily operating costs, directly affecting how much money riders retain after transporting passengers.

The scrapping of stage charges is expected to ease some of the financial pressure, although questions remain about whether the measure, alongside SACCO financing, will sufficiently address the wider cost of operating a motorcycle taxi business.

There are growing calls for complementary interventions that make fuel and essential motorcycle maintenance more affordable, allowing operators to retain more of their daily earnings, increase savings and improve household incomes.

The government's broader challenge will be ensuring that financial support translates into sustainable business growth and improved livelihoods for ordinary boda boda operators.

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