Transport service provider Pioneer Easy Bus Company has announced it could end its operations, following a disagreement with the Kampala Capital City Authority (KCCA) and Government over its contract terms.
According to a press notice, the company attributes this to failure to build bus lanes and stops along the city roads.
“The management of Pioneer Easy Bus therefore regrets to inform the public that effective Monday, 19th November 2012, Pioneer will not be in position to offer its services at the hitherto subsidized rates and thus our only options are to suspend our bus operations or charge for its services just like any service provider in the industry until such a time when Government/KCCA fulfills its contractual obligations,” a statement signed by Fred Senoga, the company’s managing director, read.
Since March 12, the bus service has been offering transport services after
Their arrival was greeted with relief by ordinary Ugandans due to the lower fares charged compared to other service providers like taxis. High fuel prices had caused transport fares to skyrocket.
However the recent months have seen the bus company embroiled in financial troubles in addition to questions over the contract it made with city authorities.
Last month, Pioneer Easy Bus employees went on strike demanding delayed salaries.
The company has since failed to pay sh6.5b in taxes to Uganda’s tax body, Uganda Revenue Authority in addition to failing to remit sh2.4b to Kampala Capital City Authority.