Private bus operators have expressed frustration over the delayed government’s disbursement of transport subsidies, with arrears dating back to September 2023.

At the height of the COVID-19 pandemic when the capacity of public transport buses reduced, the government decided to subsidise one-third of the transport fare for passengers, a move that started in October 2020.

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The government made an initial investment of about Rwf29.3 billion to subsidize the cost of public transport to ensure that it remained affordable without being loss-making for operators.

The move was maintained until March 2024.

The government was subsidizing public transport costs between 40 and 50 per cent which was scrapped, meaning that the money that used to be injected into public transport is being spent on other services delivered to citizens, according to the Ministry of Infrastructure.

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However, operators in public transport claim to have not yet received the full amount of the subsidy.

Last month, officials had indicated that the government still owes public transport companies Rwf30 billion in arrears.

An employee of Jali Transport who preferred anonymity, said that his company has an outstanding balance for seven months dating to September 2023, which the government has not paid.

We have received only about 47 per cent of total payment, he said.

He noted that even though the incentive money was usually delayed in the past, the Jali employee noted that such payment would keep their business afloat especially at times when fuel prices increased.

Robert Rwigema, President of Nyabugogo Transport Cooperative, said through different meetings organized by the government, they are given promises of the payment coming in ‘soon.’

The delayed payment, he said, has pushed individual bus owners in the cooperative to seek financial assistance in banks for cash flow operations, which comes with a burden of interest.

With the recent increase in fuel prices on the market, Rwigema added that demand for upcountry travel has plummeted significantly, leaving bus operators struggling to make profit.

That is because the removal of public transport subsidy has meant that passengers now have to pay slightly higher fares depending on their final destination, both on intra-city routes and inter-provincial trips.

Earlier this month, the Rwanda Utilities Regulatory Authority (RURA) announced new fuel pump prices, for the next two months, setting the maximum retail pump price for gasoline at Rwf1,764 per litre and that of diesel are Rwf1,684 per litre.

It increased from Rwf1,637 for gasoline and Rwf1,632 for diesel.

Evariste Rugigana, Director General at RURA said that in March, the government disbursed Rwf10 billion as part of the arrears it owes transport companies.

As of 2022, there are at least 38 licensed public transport companies in Rwanda.

Efforts to get further details from the Ministry of Finance and Economic Planning which oversees the disbursement of the funds, were futile by press time.