NTSA Proposes To Review Service Charges By Up To 3900%, Car Dealers To Pay KSh 100k Licence Fees

• National Transport and Safety Authority (NTSA) seeks to raise additional revenue to plug its budget deficit of KSh 2.37 billion
• The most substantial proposed fee increase is for changing the colour of a motor vehicle, with the cost set to rise to KSh 20,000 from KSh 500
• Matatu operators will feel the pinch as a passenger vehicle with a capacity of nine to 14 people will pay double licence fees from KSh 3,200 to KSh 6,400

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

The National Transport and Safety Authority (NTSA) has proposed to increase charges for over 40 services by up to 3900%.

NTSA seeks to raise additional revenue to plug its budget deficit of KSh 2.37 billion reported in the financial year ended June 30.

"This gap excludes additional funds required to finance the key road safety programmes and recurrent cost of maintenance of ICT systems and licences for the same. The cumulative deficit of as of June 30 was KSh 2.374 billion," NTSA stated, as reported by Daily Nation.

Which charges does NTSA propose to hike?

The highest proposed hike in charges is the approval of a change in the colour of a motor vehicle, which will cost KSh 20,000, up from KSh 500, representing an increase of 3,900%.

Motor vehicle dealers will be hit with an increase in licence fees from KSh 4,200 to KSh 100,000, a rise of 2,281%.

At the same time, if new rates are approved, dealers in new motor vehicles will pay KSh 50,000 to renew permits up from KSh 4,200.

Citizen TV reported that driving schools will experience a 150% annual license fee hike, rising to KSh 50,000 from the previous KSh 20,000.

NTSA proposed to double the cost of replacing a lost or damaged log book from KSh 2,500 to KSh 10,000, while replacing a damaged or lost driving licence would cost KSh 1,000 from KSh 500.

If a motorist wishes to convert their foreign licences, they would part with KSh 10,000 from KSh 1,000.

Matatu operators will feel the pinch as a passenger vehicle with a capacity of nine to 14 people will pay double licence fees from KSh 3,200 to KSh 6,400, while those with a capacity of 15 to 25 passengers will pay KSh 7,400 from KSh 3,750.

Digital taxi operators would also be hit as licences were reviewed upwards by 100% from KSh 100,000 to KSh 200,000.

Gov't increases passport fees

In other news, Kenyans will have to dig deeper into their pockets to afford basic travel identity and travel documents.

The changes were announced through a gazette notice dated Monday, November 6, signed by Interior and National Administration Cabinet Secretary Kithure Kindiki.

Kenyans will pay KSh 7,500 to get the 34-page passport and KSh 300 to register for a national identity card.

The new fees sparked an uproar online.