No one starts something expecting to fail. Yet when it comes to running of Bus companies that is what everyone must expect. Studies have shown that since 2008, Uganda and East Africa have seen a collapse of over 45% of Buses that opened business between 1970 and 2020.
Based on Uganda Transport License Board research and data, we dug information about Bus companies that started very well and had exponential growth, with value added to the Uganda and East African Economy but disappeared into oblivion. So why did these Bus did companies fail? The real reasons can be hard to know, but the reviews online, information from journalists and former employees offer plenty of clues.
In doing this research, we point out some of the best Bus companies that dominated the roads in Uganda and East Africa- by offering extra ordinary transport services, efficient timely schedules, a great safety record and had attained a level of market traction, but found themselves disappearing into oblivion.
On average, it took these Bus companies 30 years to fail, Akamba Bus company founded in the 1970’s failed in 2012, took the longest time in the Bus travel Business, and Bahama Blessings coach died within two years from the time it was founded, was the youngest. Some of the reasons these Bus companies have stated for failure include stiff competition from new young Bus companies, debts, leadership wrangles and failure to replace their old fleet of Buses;
Elgon Flyer Uganda.
There’s an African saying about how an Elephant dies from stepping on a maize comb, it can slide and fall to death, Elgon Flyer is a case in point, after being a darling to many on the eastern Uganda route, customers woke up to the sight of their favorite Bugisu birds off the road. It was a monopoly and operated on the Mbale- Kampala route. The news of its collapse in 2014 sent shockwaves through the Bus industry and the travel customers who were loyal to it. Elgon flyer had an experienced team of Bus drivers and conductors, and kept a great safety record, there was entertainment during the journey and their buses were always clean. This helped it build a strong customer base, that up to now, people comment on their website requesting them to get back into business. I also honestly hope the Elgon flies again!
What really went wrong? The financial situation detoriated, and had faced legal battles; the notable one being against Stanbic Bank. Also the failure to introduce a new fleet of buses affected them, their most lucrative route of Mbale- Kampala became a playground for a large number of investors backed by modern buses ie Teso Coaches, Kakise, YY Coaches.
Akamba Bus Company.
In 2012, after nearly 57 years of Public transport Service dominance in East Africa, Akamba met her death, Originating from Machakos in Kenya, Akamba became a gigantic force in the East African Bus industry with incredible transport services, incredible safety record and phenomenal speed of the Akamba Buses was huge attraction for many travelers.
You wanted to travel around East Africa, How else would you have travelled, if you wanted luxury and dignity, there was no East African who never rode Akamba, they even introduced smaller, cosier and pricier buses, Fantastic Akamba!
According to the Uganda Radio Network (URN), Akamba traversed East Africa running with 150 buses, with 500,000 customers per month at its best, that’s a number unattainable by the current crop of Bus companies. What went wrong? Despite the success that Akamba enjoyed, a lot has been said about she met her death from suffering with heavy debts from Kenya Commercial Banks and Diamond Trust Bank, and facing the worst road accident in the history of East Africa, at Kapkatungor, Kericho County, Kenya. 108 people perished involving a Shaggy and Akamba Bus, this marked the beginning of her downfall.
Bahama Blessings.
This had become the face of long distance on the Kampala- Kigali-Bujumbura route. For her downfall, it was attributed to poor management, and financial debts. Its strength lay in the provision of efficient timely schedules to Burundi and Rwanda, and of course her prices were extremely friendly.
Her competitors took advantage of the weaknesses, added a fleet of new buses, and with this new competition, Buhama blessings run out. As the market was encroached by Link Buses, the market share for Buhama blessings continued to shrink.
Kampala Coaches.
For many, Kampala coaches represents the thrill and experience of modern bus travel from Kampala to the rest of the towns in East Africa. Its evidently to those who travelled around East Africa, Kampala coaches was the birth of the modern experience of travel, entertainment, provision of VIP Sections for those who preferred to travel like Bosses, Comfortable seats, Refreshments, clean buses and an experienced team.
My first encounter with modern travel was with Kampala coaches. After the collapse of Akamba, they had become the pioneers of cross-border travel, and pioneers of so many other things. They fell hard! Very hard! According to Uganda Revenue authority, Kampala coaches owed $1M in tax arrears accruing from unpaid VAT on some services offered, PAYE and corporate taxes from 2007. Its fleet of buses was confiscated and sold off by URA to service their debt.
How the mighty fall! Not so long, We hope not to see another Bus company follow the route of these fallen giants.
Remember when Companies collapse, it breeds a lot of pain and ugly results such as loss of jobs, debts, reduction of revenue collected by the Revenue Authority, increase in Bus fares among others; we hope the failures help other Bus companies learn, grow and succeed. There’s a Yoruba adage, that anything that doesn’t grow, its death is eminent.
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