The Ministry of Works and Transport says the backlog has strained the vehicle and motorcycle industry, slowed down imports, and created opportunities for exploitation in replacement and post-registration services.
Speaking after a high-level meeting on the performance of the transport registration system, Minister of Works and Transport Fred Byamukama acknowledged that delays in issuing digital number plates had become a serious operational and economic challenge affecting both businesses and end users.
He said some motorcycle distribution companies that previously handled hundreds of units daily were now unable to release stock due to delays in registration. In some cases, dealers have already paid taxes to the Uganda Revenue Authority but cannot hand over vehicles to customers due to missing plates.
“The business environment is under pressure. People have paid money, but they cannot access number plates. Businesses are being affected,” Byamukama said.
The minister also highlighted pressure in the post-registration segment of the system, which handles replacement of lost, damaged, or voluntarily changed number plates. He said this category had become heavily congested and was contributing significantly to the backlog.
According to the ministry, the contractor is currently able to process about 2,500 post-registration applications per month, covering both motor vehicles and motorcycles. However, official data shows more than 47,000 pending applications in the system.
Byamukama said government is now considering emergency measures, including temporarily suspending voluntary number plate changes, in order to prioritize urgent cases and reduce pressure on the system.
He added that the contractor has committed to resolving delays affecting newly registered vehicles within three weeks, while broader backlog challenges are expected to be cleared by the end of August.
The minister further warned that the delays have created room for corruption, with some brokers allegedly charging between Shs3 million and Shs4 million to fast-track replacement of digital number plates.
“Ugandans are right to complain. The delays have created room for exploitation,” he said.
Byamukama also urged improvements in national surveillance infrastructure, including expansion of security camera coverage, saying this would strengthen the effectiveness of the digital number plate system in tracking vehicles and improving road safety.
Despite the challenges, he defended the contractor, noting that most of the workforce involved in the project is Ugandan and that the company has acknowledged capacity limitations while committing to address them.
The ministry is expected to hold further technical consultations with the contractor within a week to agree on immediate interventions aimed at stabilising the system.
The production and installation director of the digital number plate project, Nikita Novoselov, said the backlog and supply disruptions affecting the system will be fully resolved by 30th August.
Speaking after the meeting with the Ministry of Works and Transport, Novoselov said both parties agreed that the system would stabilise within three weeks, with full operational recovery expected shortly thereafter.
“We agreed that in three weeks the crisis will be sorted and all backlog will be cleared no later than 30th August,” he said.
Novoselov attributed the delays largely to global logistics disruptions affecting the delivery of key components used in production. He cited congestion at transit hubs, including airports in Ethiopia, which he said had slowed down shipment flows.
He added that alternative supply routes were being explored to reduce reliance on constrained logistics channels and improve delivery timelines.
On capacity, he said the facility is technically capable of producing more than 2,000 digital number plate kits per day, but stressed that supply chain interruptions remain the main bottleneck rather than production capability.
Novoselov also confirmed that post-registration services will be capped at around 2,500 applications, in line with government discussions, to help manage demand within available capacity.
On concerns about the reliability of vehicle tracking technology, he dismissed claims that the system was widely failing, saying it functions effectively when proper procedures are followed, including reporting cases through police channels.
However, he alleged that some individuals were deliberately tampering with tracking devices and that some garages were offering services to disable or interfere with the system, undermining both enforcement and road safety.
Authorities, he said, are working to address such practices.
The contractor expressed confidence that once logistics normalise, full service delivery will resume and the backlog will be cleared within the agreed timeframe.