The conflict had its roots in then Kampala City Council's [now Kampala Capital City Authority] efforts to increase revenue and improve urban management during the early 2000s.
Under Ssebaana's leadership, KCC contracted a private company, Real Boda Boda Cyclists, to collect parking fees and other charges from motorcycle taxi operators in areas such as Nakawa and Kawempe.
The move was intended to strengthen the city's finances and support urban development projects, but it quickly sparked anger among riders who accused the collectors of harassment, extortion and excessive enforcement.
As complaints mounted, Museveni intervened directly. In March 2004, following petitions from boda boda operators, he ordered an immediate halt to the daily and monthly fees being imposed on riders by urban authorities. The President positioned himself as a defender of ordinary workers who relied on the sector for their livelihoods.
The dispute escalated dramatically on June 2, 2004, when State House formally reinforced the President's directive. Through a letter written by then acting Principal Private Secretary Fox Odoi Oywelowo, KCC was warned that the continued collection of the fees was illegal and had to stop immediately.
Ssebaana responded with a firm defence of the city's position. Citing the Local Government Act of 1997, he argued that local authorities were legally empowered to levy such charges and that the revenue was essential for maintaining roads and funding development projects.
He accused the central government of repeatedly undermining local authorities and weakening their ability to manage growing urban centres.
The disagreement soon became a national political issue. Later that year, during a meeting of the Urban Authorities Association of Uganda in Kasese, Ssebaana openly criticised the President's directive, describing it as an unfortunate move that threatened the financial independence of local governments.
Museveni ultimately prevailed. The fees were abolished, costing KCC millions of shillings in lost revenue. Yet the decision carried wider political consequences.
It strengthened the bond between the President and Kampala's growing boda boda community, helping transform riders into one of the city's most influential political constituencies.