By Swift Reporter
Passenger and cargo transport between Adjumani, Moyo, Yumbe, Arua City and Kampala has been disrupted after Zawadi Bus Services suspended operations following a mega Stanbic Bank loan.
The suspension, announced on Monday, September 14, 2026, has left passengers stranded and dozens of employees facing uncertainty, bringing to a halt a transport service that has connected communities in northern Uganda with major urban centres for more than 17 years.
Zawadi Managing Director Simon Amajuru announced the suspension explaining the financial challenges that have pushed the company into its current predicament.
According to Amajuru, the company’s financial difficulties were largely worsened by the prolonged effects of the COVID-19 lockdowns, which severely disrupted public transport at a time when Zawadi had significantly expanded its fleet through bank financing.
Zawadi Services Limited was initially licensed by the Ministry of Works and Transport in September 2008 to operate two new buses. The company acquired the buses through an asset lease facility from Stanbic Bank, with repayments initially made as scheduled.
The company subsequently expanded its operations and introduced advance seat booking, adhered to route schedules, improved timekeeping, eliminated excess passenger loading and maintained strict cleanliness standards.
On September 1, 2009, Zawadi was formally incorporated as a limited liability company, with bus transportation as its core business. That same year, it acquired two additional buses with financing from Stanbic Bank.
By 2013, the company had added seven more buses through additional financing from the bank, valued at approximately Shs1.08 billion.
Amajuru said Zawadi had, during this period, managed to service its financial obligations without major difficulties.
The expansion entered another phase in 2019 when the company secured a further substantial loan from Stanbic Bank to acquire eight new buses.
The investment helped Zawadi strengthen its presence along the northern transport corridor, operating routes linking Kampala with Moyo and Adjumani, while also introducing a Kampala-Yumbe service through Arua.
COVID-19 Lockdowns
The company’s fortunes changed significantly in 2020 following the outbreak of COVID-19 and the nationwide restrictions on movement.
Uganda imposed a lockdown in March 2020, severely restricting public transport and disrupting Zawadi’s operations. Services to Yumbe were particularly affected because of the district’s proximity to the South Sudan border and additional movement restrictions.
According to the company, operations to Yumbe only resumed in October 2020.
A second lockdown between May and October 2021 caused further disruption, with Amajuru saying Zawadi effectively lost about 12 months of business during the two lockdown periods.
While buses remained parked, the company says its fleet deteriorated and revenue declined, yet loan obligations and interest continued to accumulate.
The company suffered another setback in 2021 when one of the buses acquired during its expansion was involved in a fatal accident with a truck and was subsequently written off.
Zawadi says compensation for the damaged bus was eventually paid directly to Stanbic Bank in 2022.
However, the company says the combined effects of the lockdowns, fleet deterioration, lost revenue and accumulated financial obligations made recovery increasingly difficult.
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