President gives city bus operations deal to tycoon Katabazi

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President gives city bus operations deal to tycoon Katabazi
President gives city bus operations deal to tycoon Katabazi

Africa-Press – Uganda. President Museveni has directed the Prime Minister to grant the monopoly to produce and operate public bus services in the Kampala metropolitan Area to an individual.

In a November 20 letter to Prime Minister Robinah Nabbanja dated November 20, Mr Museveni directed that Mr Metu Katabazi, the proprietor of Metu Zhongtong Bus Industries, be given exclusive rights to operate public buses in the Kampala Metropolitan Area.

“This is to direct you to give exclusive permission to Mr Metu Katabazi to run Mass Transit Service for buses in Kampala and the surrounding towns using the buses he has fabricated in Uganda,” President Museveni wrote.

The Senior Press Secretary to the President, Mr Sandor Walusimbi, confirmed the letter.

“It (letter) is authentic,” Mr Walusimbi said yesterday.

Currently, the Kampala Metropolitan Area has no bus service system and relies on private 14-seater commuter taxis and motorcycles to carry passengers. However, the traffic congestion has reached worrying levels.

Mr Museveni said granting Mr Katabazi exclusive rights would empower Uganda’s manufacturing sector.

“First of all, it gives him more cash for expanding our manufacturing. Secondly, don’t forget that foreign service providers, transporters, in this case, externalise some of the money they earn in Uganda. When, therefore, you have an actor that both produces the goods (vehicles in this case) and provides the service (transport), you shouldn’t miss such an optimal combination,” he said.

The President said in the event Mr Katabazi would need more buses for the transport operations than those he can manufacture, he should only buy from Kiira Motors.

“He should never import foreign made buses to us in this transport business,” Mr Museveni said.

KCC tight-lipped

The spokesman of Kampala Capital City Authority, Mr Simon Kasyate, couldn’t comment on the letter, which he has also seen circulating online, because he didn’t know its authenticity.

Mr Kasyate said he needed to reach out to the KCCA Executive Director’s office to establish its authenticity.

When Mr Katabazi was contacted, he said he had heard about the letter, but couldn’t comment about it since he had not received a copy yet.

“I didn’t receive my copy. I cannot confirm whether it is genuine or not,” Mr Katabazi said.

He declined to comment on whether he has any plans to join the mass transit services in Kampala or not.

“I am a businessman. You cannot expose your business ideas in the media,” he said, adding: “On matters to do with the President, I cannot talk about them. You should talk to the President’s Principal Private Secretary.”

Fragile business

Several privately and publicly owned bus companies in the Kampala Metropolitan Area have failed due to high operational costs, taxes, and stiff competition from other service providers.

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