Motorists, car dealers face higher charges as NTSA hikes fees

The National Transport and Safety Authority (NTSA) is proposing to review its service charges by up to 3,900 per cent to plug a budget deficit of more than Sh2.37 billion.

In a proposal, the transport sector regulator said its financial performance has been in deficit over time, with a shortfall of Sh550 million in the financial year ending June 30, 2023 alone.

"This shortfall does not include the additional funding required to fund key road safety programmes, recurrent costs of ICT systems maintenance and licences for the same. The cumulative shortfall as of 30 June 2023 was Sh2,374 million," NTSA said.

"The total funding gap under development is Sh400million, of which Sh250million is required for the smart driving licence and Sh150million for counterpart funding from development partners," it added.

To bridge the shortfall, the NTSA is now proposing a drastic increase in the cost of 45 services - including a 3,900 per cent hike in what one would pay to have a colour change approved on a vehicle from the current Sh500 to Sh20,000.

The regulator is also proposing to come down hard on second-hand car dealers with a proposed new licence fee of Sh100,000 from the current Sh4,200 - a jump of 2,281 per cent if the proposed rates are approved.

Renewal of a used car dealer's licence will also jump by 1,090 per cent to Sh50,000 from the current Sh4,200.

Dealers of new motor vehicles will face a revised registration fee of Sh100,000 from the current Sh4,200, while renewal of a licence would cost them Sh50,000 from the current Sh50,000.

The fee for replacing a lost or damaged log book would rise from Sh2,500 to Sh10,000 under the NTSA proposals, while replacing a damaged or lost driver's licence would rise from Sh500 to Sh1,000.

Motorists will also have to pay the NTSA Sh10,000 from Sh1,000 to convert their foreign licences.

Transfer of ownership of motor vehicles with an engine capacity not exceeding 1,000cc will now cost Sh10,000 up from Sh1,660.

A road service licence for vehicles with a capacity of 6-8 passengers will cost Sh5,400, up from Sh2,700.

"As an institution, our capacity has increased. The number of stations we are manning has also grown, so we need to increase our capacity to deal with the challenges of road traffic and that's why we need to increase our budget to foot the bills," NTSA board member Paul Posh Abwora said in an interview.

A licence for a 9-14 passenger vehicle will cost Sh6,400, up from Sh3,200. A licence for a 15-25 passenger vehicle will cost Sh7,400, up from Sh3,750.

Licences for digital taxi operators such as Bolt and Uber will also be revised upwards by up to 100 per cent from Sh100,000 to Sh200,000.

Interestingly, the fee for the transfer of ownership of motor vehicles with a capacity not exceeding 1,000cc will be more expensive compared to the transfer of motor vehicles with a capacity between 1001-1200cc.

"Consideration should be given to introducing a tiered fee structure based on the nature and extent of the services required. For example, the motor vehicle inspection fee of Sh1,000 currently charged for the inspection of all vehicles including the three-wheeler (tuk-tuk) is not sufficient to cover operational costs," the draft report says.

Under the proposed fees, obtaining a standard number plate from the NTSA would cost Sh5,000 compared to the current Sh3,000.

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