The Ministry of Works and Transport has grounded all buses belonging to Kalita Transporters Limited after they disregarded an order to relocate from the city centre to gazetted bus terminals.
Kalita Transporters Ltd that has a dozen of buses has been operating a terminal at Nakivubo War Memorial Stadium parking yard.
According to a letter dated March 31, by the Transport Licensing Board, Kalita transporters will not be issued a new operators’ license, which is the route chart, until it has relocated to the new parks or its established terminal outside the city centre.
“You were advised to relocate your buses accordingly since you did not have an approval to operate a private terminal from Kampala Capital City Authority (KCCA),” a letter written by Transport Licensing Board to Kalita Transporters Ltd reads in part.
“The board at its 28th meeting held on March 29, upheld its earlier decision not to issue you with operator licenses until you obtain approval from KCCA to operate a private terminal or until you have complied with the board’s decision and other statutory requirements,” adds the board
The new directive could paralyse bus operations on several western routes, like Masindi and Fort Portal towns, since Kalita Transporter Ltd is the dominant transport player.
Kalita Transporters Ltd had started building a bus terminal at Nakivubo War Memorial Park Yard on Plot 28 Namirembe Road, but KCCA parcelled out the land to Mr Hamis Kiggundu to construct structures.
The Works Ministry Permanent Secretary, Mr Bageya Waiswa, also wrote a letter stating that Kalita Transporters Ltd wasn’t approved to build a terminal in the same areas and “as such isn’t authorised to operate on plot 28 Namirembe Road.”
When contacted Mr George Balongo, the operations manager for Kalita Transporters Ltd, said they once received the letters, but everything is a plan by Mr Kiggundu to evict them from the plot yet they have a license for 10 years.
“He has to compensate us before we leave which is also difficult because we paid money to Nakivubo stadium managers when Uganda Revenue Authority closed them after failing to pay taxes. And that money we used, we got it from the bank..,” Mr Barongo said yesterday.
In November 2016, Transport Licensing Board and KCCA ordered the relocation of buses from the central business district except those that use the Eastern routes.