At the beginning of the 2025/2026 financial year, the municipality awarded a lorry parking tender worth more than Shs28 million to Chalende Uganda Limited. Under the arrangement, the company was mandated to collect parking fees from pickups and lorries operating within the municipality, charging each vehicle Shs3,000 per day.
Nearly a year later, however, the company says it has failed to collect a single shilling from transport operators, raising concerns about substantial financial losses for both the contractor and the municipality.
John Obbo, the proprietor of Chalende Uganda Limited, said despite paying the agreed tender fees to the council, the company has not generated any returns from the investment.
"I have not received even a coin, yet I paid my money to the council. I am now demanding that the council refunds my money together with the profits I expected to earn because I have gained nothing," Obbo said.
Transport operators maintain that their refusal to pay the levy is not an act of defiance. Some drivers argue that the charge is unlawful, while others say the fee is too high given the uncertain nature of their business.
Several operators also claim they were advised by district leaders not to comply with the payment requirement.
"We can stay here for even three days without getting any business. Where do they expect us to get the money?" asked driver Michael Othieno.
The dispute has fuelled tensions between Tororo Municipal Council and the office of the district chairperson, with municipal leaders accusing district authorities of frustrating lawful revenue collection efforts and undermining service delivery.
Tororo Municipality Mayor Benard Ochieng said the current standoff reflects a pattern of interference by district leaders in municipal revenue collection.
"Four years ago, the District Chairperson stopped boda-boda riders from paying revenue. Today it is the drivers. We cannot tell where we are heading as a municipality," Ochieng said.
Under Section 9(1) of the Local Governments Act, a municipal council is established as a separate local government with powers to administer its own affairs, including the collection of local revenue.
The dispute has consequently raised questions about the extent to which district leaders can influence decisions made by municipal authorities.
District Chairperson John Okea denied allegations that he instructed drivers not to pay the levy. He nevertheless acknowledged that the amount charged remains a major concern among transport operators.
"If the issue is about the high fee, that is understandable. But claims that I told them not to pay tax dues are simply not true," Okea said.
While defending his position, Okea admitted that he had previously intervened on behalf of boda-boda riders, arguing that some municipal enforcement operations were excessively harsh and, in certain instances, allegedly contributed to fatal road accidents.
"Our people were perishing because boda-boda riders trying to evade tax enforcement often ended up getting involved in accidents," he said.
Mayor Ochieng, however, insisted that all road users benefit from municipal services and therefore have an obligation to contribute to local revenue collection.
"These are the same people who demand services from the council. Blocking them from paying taxes leaves us unable to effectively serve our communities," he said.
With the financial year drawing to a close and the tender holder reportedly demanding a refund of the money paid to secure the contract, municipal authorities fear losses exceeding Shs50 million through refunds, anticipated profits and uncollected revenue.
The standoff leaves Tororo Municipal Council facing difficult questions about revenue enforcement, relations between different levels of local government and the long-term sustainability of public service delivery.