The research was carried out to investigate the challenges faced by logistics in service provision in KK transporters .this was because koboko transporters mostly provide logistical services to their clients within the area. This research was mainly carried out in both the head quarter in Kampala and koboko branch which was located in koboko. The aim of the study was to investigate the challenges facing koboko transporters in their service provision, and how the distribution channels and the logistical networks were used to give better service level to the clients. To achieve the objectives of the study, the researcher collected the data by the use of the various research instruments like questionnaires were used. A sample of 30 respondents was selected from the company. This included the procurement department, marketing department, accounting, stores and management department. As the findings were presented and analyzed, it was discovered that the logistical challenges were mostly; competition, geopolitical threats, limited experience, limited finance to mention among others. On the base of the findings and the summaries, conclusions were made while recommendations were also obtained from both the findings and responses of the respondents.