Cash-strapped Pioneer Bus Company To Suspend Operations


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abortion geneva; font-size: small;”> The bus company said in a press statement Tuesday that KCCA’s failure to build bus lanes and stops along city roads was a breach of agreement which would lead to halting its operations or set similar charges as other operators in the transport industry.

viagra geneva; font-size: small;”>”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,” the statement signed by Fred Senoga, the company’s Managing Director, reads in part.

“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.”

Having started on March 12, the company says it has been charging fairly lower fares compared to taxis but this appears to be a myth.

For example, says Isa Mutwalibu, a daily customer of the buses, he is charged Shs1, 000 from Ntinda to Kampala city centre – a similar charge by taxis.

Sources further say the Bus Company directors have been facing “grave recession pains” after falling short of out-competing other operators in the industry.

There have also been media reports that Pioneer Easy Bus is on the brink of bankruptcy.

The company has never paid even a single coin in taxes to KCCA since the year started and have vowed not to, citing breach of some terms in the contract with the city authority.

It had also promised to deliver more buses to reduce traffic in the city but this appears to be far from reality.


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