Zawadi Services appeals to Museveni for Shs1.7bn bailout

[Da Dona]

Zawadi Services Ltd, a bus company operating in the Greater Madi sub-region, has appealed to President Yoweri Kaguta Museveni for a Shs1.7 billion bailout to prevent the collapse of its operations and the loss of 42 jobs.

The company says its financial difficulties have put regional transport services at risk, with its closure potentially affecting passengers travelling between Kampala, Moyo, Yumbe and Arua. It also says parents who rely on its buses to transport children to school and patients travelling to Mulago Hospital would be affected.

Zawadi Services said it supported the Mulago Cancer Institute with free transport during the 2020 COVID-19 lockdown and occasionally transported residents attending presidential addresses in the Madi sub-region at fuel-refund costs.

The company said 42 employees could lose their jobs if operations cease, adding that some workers have outstanding salary arrears but have continued working despite the financial difficulties.

The appeal follows a directive from Stanbic Bank for the company to park its remaining buses as the bank seeks to recover part of an outstanding loan.

In a statement issued on Monday, Zawadi said it accumulated debts following the COVID-19 lockdowns in 2020 and 2021, which restricted transport operations for about 12 months.

According to the company, it borrowed Shs2.857 billion from Stanbic Bank in 2019 to purchase eight buses. Zawadi said interest and arrears accumulated during the lockdown period, pushing the outstanding obligation to more than Shs4 billion.

The company said it repaid Shs5.743 billion between 2019 and 2025 but currently owes approximately Shs1.7 billion in principal, excluding VAT.

Zawadi said it sold seven buses in 2025 to reduce its debt burden. However, the bank has now directed the company to park its remaining buses and recover part of the outstanding loan through their sale.

The company said that even after the sale of the four buses financed through the bank, it would still be left with a balance of about Shs900 million.

Christine Aber, an accountant who joined Zawadi in 2009, said the company had supported her career progression from a diploma to a bachelor's degree in accounting.

Aber, a single mother, said she had also been using her earnings from the company to support her first-born child at university.
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“I paid for my fees. My first-born is at the university, and I have been paying for him through support from Zawadi Services Limited. When we got the news, we were stranded. Where do I start life from?” she said.​

Lawrence Logi, a senior booking clerk who said he has worked with the company for 18 years, described the possible closure as devastating.
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“When I heard this news this morning, I was devastated because this was my only source of income,” he said.​

Logi said the closure would also affect residents across the Madi sub-region, particularly those who rely on Zawadi buses for affordable transport.

Zawadi Services is asking President Museveni to provide the Shs1.7 billion bailout and waive the corresponding VAT.

The company said the intervention would allow it to settle its bank obligation, resume operations, clear outstanding staff salaries and NSSF obligations, and continue meeting its tax obligations.

Zawadi said it remains hopeful that the government will support what it describes as a genuine business that has contributed to the local economy and the transport sector.

Nile post UG​