Government Warns Ugandan Car Dealers Over Illegal Clearance Charges

Uganda’s Ministry of Works and Transport has intensified inspections of car dealers in Kampala accused of imposing illegal clearance charges on customers importing vehicles. Some car bond operators allegedly demand between 800,000 and 2 million shillings, although the approved clearance-related charge is 714,300 shillings.

The crackdown followed complaints raised by Members of Parliament. Commissioner for Road Safety Winston Katushabe led ministry officials on unannounced inspections at several car bonds, where officials said customers were asked for additional money disguised as clearance fees.

“The approved charges are 714,300 shillings, but some dealers are increasing these charges to between 800,000 and two million shillings, claiming the money is for clearance, when it is not,” Katushabe said.

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The approved charges are 714,300 shillings, but some dealers are increasing these charges to between 800,000 and two million shillings, claiming the money is for clearance, when it is not.

The ministry has ordered car bond operators to display the approved fee structure prominently so customers can see what they are required to pay. Officials say the measure aims to improve transparency and protect motorists from unauthorised charges.

Katushabe warned that dealers who continue the practice could face severe sanctions, including closure and cancellation of their operating licences. “We will close them should we establish that they continue with the illegality,” he said. Inspections will continue as part of a broader road-safety enforcement campaign covering dangerous vehicles and businesses involved in bringing vehicles onto Ugandan roads. Car buyers have been urged to demand official receipts and a clear breakdown of all charges.

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We will close them should we establish that they continue with the illegality.