About 60 percent of operators in Uganda’s postal and courier sector are operating without licenses, raising concerns about consumer protection and fair competition, according to the Uganda Communications Commission (UCC).
The revelation was made during the Annual Postal and Courier Engagement Forum held in Kampala, which brought together regulators, logistics companies, and other stakeholders to discuss challenges and opportunities in the country’s growing delivery industry.
Rapid growth driven by e-commerce
Despite regulatory gaps, the sector has experienced significant growth in recent years. Industry figures indicate that revenue from the postal and courier sector rose from Shs13 billion in 2024 to Shs22 billion in 2025.
Experts attribute this growth largely to the expansion of online commerce, particularly through digital marketplaces such as Jumia and Jiji.
The surge in delivery demand is also linked to increasing digital connectivity across Uganda. The country now has approximately 16.7 million mobile phone users, 18.5 million active 30-day internet users, and 36.3 million active 90-day mobile money users, all of which are driving online shopping and logistics services.
Informal operators hurting licensed companies
However, industry leaders say the large number of unregulated courier providers is creating serious challenges for licensed companies.
Patrick Omulo, Chairperson of the Postal and Courier Association, warned that formal operators are increasingly losing business to informal providers who do not comply with licensing requirements.
Many individuals and businesses use boda boda riders, taxis, and buses to transport parcels, creating an informal delivery system that operates outside regulatory oversight.
According to Omulo, this practice not only undermines licensed companies but also exposes customers to risks.
“People take their items to taxis to move them, but when the items get lost there is nowhere they can go for redress,” he said.
Consumer protection concerns
The issue also raises concerns about consumer rights and accountability.
Acting Executive Director of UCC Fred Otunu said many transport operators unknowingly engage in courier services without realizing that the activity requires licensing.
He explained that once a transport operator begins delivering parcels or letters, they legally fall under the courier regulatory framework and must obtain a license.
Otunu warned that sending valuable items through unlicensed services could leave customers without protection.
“If you send an item such as a land title through a bus that is not registered as a courier service and it disappears, you will have no avenue for recourse,” he said.
Calls for stronger regulation
Industry leaders are now calling for closer collaboration between regulators and private operators, along with policies that reflect the changing dynamics of modern delivery services.
They also urged the government to introduce incentives that encourage informal operators to register and comply with licensing requirements.
UCC officials say strengthening regulation will help create accountability, improve service standards, and build trust in Uganda’s rapidly expanding logistics sector.
As online commerce continues to grow, experts say formalizing the courier industry will be crucial to ensuring safe, reliable, and professional parcel delivery services across the country.
