Politics 21 June 2026 Nile Post
Tororo Municipality Faces Millions in Losses as Lorry Parking Levy Dispute Continues
A year-long dispute over a Shs28 million lorry parking tender in Tororo Municipality has halted revenue collection, creating significant financial losses for a private contractor and the local government. The standoff involves municipal authorities, transport operators, and district leaders. Source: https://nilepost.co.ug/news/350308/tororo-municipality-faces-multi-million-revenue-loss-as-lorry-parking-levy-standoff-persists
Tororo Municipality is grappling with a severe revenue shortfall due to an unresolved conflict over a lorry parking levy. A private contractor, Chalende Uganda Limited, awarded a tender worth over Shs28 million at the start of the 2025/2026 financial year, has been unable to collect any fees from transport operators.
The municipality had contracted Chalende Uganda Limited to collect Shs3,000 daily from each pickup and lorry operating within its jurisdiction. However, nearly a year later, the company reports zero earnings, leading its proprietor, John Obbo, to demand a refund of his investment, including expected profits.
Transport operators cite various reasons for their non-compliance. Some argue the levy is unlawful, while others deem it excessively high, especially given the unpredictable nature of their work. Adding to the complexity, some drivers claim they were advised by district leaders not to pay the fee.
This situation has ignited tensions between Tororo Municipal Council and the district leadership, with municipal officials accusing district authorities of undermining revenue collection efforts and hindering service delivery. Mayor Benard Ochieng pointed to a pattern of interference, recalling a similar incident four years prior involving boda-boda riders.
District Chairperson John Okea has denied instructing drivers to withhold payments but acknowledged concerns about the fee’s high amount. He previously intervened in disputes over boda-boda levies, citing safety concerns related to tax evasion enforcement.
Mayor Ochieng stressed the importance of the levy for funding municipal services, stating that non-payment prevents the council from effectively serving the community. As the financial year ends, the municipality anticipates losses surpassing Shs50 million, encompassing refunds, lost profits, and uncollected revenue, raising critical questions about local government revenue strategies and inter-governmental relations.
Source: Nile Post