By KT Reporter
Uganda’s courier industry is facing mounting challenges as unlicensed operators now account for 60 percent of the market, according to data from Posta Uganda.
The growth in informal delivery services is raising concerns among licensed companies and the Uganda Communications Commission (UCC) over lost revenue, consumer protection, and unfair competition.
Since the 1990s, Uganda’s courier sector has expanded from a single player, Uganda Posts and Telecommunications Corporation, to more than 50 regulated companies.
Despite this growth, only 56 companies,3 domestic and 23 international, are licensed, representing just 40 percent of market activity, according to the Courier Industry Association of Uganda (CIUA).
Patrick Omulo, chairman of the Courier Industry Association Uganda and Head of Business at SGA Courier Uganda, said the rise of unregulated operators is threatening public trust and industry sustainability.
“The courier industry relies on speed and trust,” Omulo said. “When packages are delayed or lost, and there is no formal way to resolve the problem, the public loses confidence in legitimate companies.”
The arrival of boda-boda and commuter taxi delivery services has intensified competition. These services are readily available via phone call, text, or at taxi parks, making them convenient for sending parcels.
However, customers often lack avenues for redress if deliveries fail. Fred Otunnu, Director of Corporate Affairs at UCC, said the proliferation of unregulated operators requires urgent attention from policymakers and regulators.
Otunnu urged the courier sector to embrace digital technology to improve speed, accountability, and resilience, noting that modern logistics goes beyond transportation to include digital integration, transparency, and cost efficiency.
He also highlighted the sector’s role in supporting e-commerce, small businesses, and cross-border trade, stressing the need for stronger collaboration between regulators, government agencies, and industry players.
The discussion took place during the Annual Postal and Courier Engagement, held under the theme “Harmonizing the Supply Chain Ecosystem for Resilient Logistics”, which focused on collaboration, emerging challenges, and the future of postal and courier services in Uganda.
On the technology front, Omulo noted that companies are adopting e-mobility solutions and integrating apps similar to boda-boda hailing services to enhance efficiency.
He called for legal and regulatory reforms to keep pace with the evolving courier landscape, especially with the growth of digital operations and informal delivery services.
“The current legal framework may not adequately cover these challenges,” he said.
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