The government is under growing pressure to explain a controversial revenue-sharing arrangement under the Express Penalty Scheme (EPS), which allocates 80% of all road fine revenue to a Russian private company—leaving the taxpayer with just 15%.
The EPS, touted by the Ministry of Works and Transport as a tool to reduce traffic deaths and fund road construction, has instead sparked widespread outrage after details emerged showing that GS, the Russian firm contracted to implement the system, will earn over $408 million of the projected $510 million in fines.
In contrast, the government will receive a mere $76.5 million, with the remaining 5%—about $25.5 million—going to the National Enterprise Corporation (NEC), a government-owned entity.
The imbalanced revenue sharing reality was revealed a group of legislators who wrote a minority report in 2024 in which they recommended the rejection of the controversial scheme.
Lawmakers and citizens alike have condemned the arrangement as lopsided and exploitative, especially given that the Ugandan government provides land, infrastructure, and enforcement support at minimal or no cost.
Parliamentary committees reviewing the financial model have described it as “commercially unreasonable” and warned that it exposes the government to serious political risk while shielding the private investor from nearly all financial downside.
Further inflaming public anger is the revelation that the government will not receive any share of an additional $486 million in revenue from EPS-related services such as the issuance of number plates and vehicle monitoring—services entirely controlled by the private firm.
“This is not just a bad deal—it’s a scandal,” one MP said during a heated committee session.
“We were told the EPS would help fix our roads, but with only 15% of the fines coming back to government, who exactly are we helping?”
The Ministry of Works had earlier promoted the EPS as a modern solution to Uganda’s road safety crisis.
The system uses automated cameras to detect violations and issue instant fines, which officials said would not only curb reckless driving but also fund much-needed roadworks. However, the new financial details have cast serious doubt on those claims.
In stark contrast, Rwanda has implemented a far more transparent and publicly beneficial version of EPS. Since deploying automated fines of Rwf25,000 (around Shs80,000) for speed violations six years ago, Rwanda has reduced road fatalities by 22%—from 739 deaths in 2019 to 578 in 2021.
More importantly, the revenues are redirected into social programs, including community health insurance for vulnerable populations.
There is no private firm profiting from the fines, and Rwanda Police officers do not receive commission-based bonuses.
Uganda’s system, however, imposes fines of up to Shs600,000—nearly 300% higher than Rwanda’s—despite persistent issues such as pothole-ridden roads, poor signage, and rampant corruption in traffic enforcement.
Critics argue that punishing drivers without first fixing the systemic issues is both unjust and ineffective.
“What’s the point of high-tech enforcement if drivers are being fined for dodging potholes or responding to conflicting signals from traffic police?” asked public policy analyst Raymond Kasirye.
“Without fair enforcement and reinvestment, it’s just a money grab.”
With elections looming in 2026, analysts warn that the EPS controversy could become a significant political liability, particularly if the public continues to see no tangible improvements in road conditions despite the steep fines.
The parliamentary committee has called for an urgent review of the EPS contract. Recommendations include revising the revenue-sharing formula to reflect the risks borne by each party, and ensuring that government also earns from auxiliary services currently monopolised by the contractor.
“Ugandans deserve better,” the committee report concludes.