The National Transport and Safety Authority (NTSA) is considering a substantial hike in fees for over 40 services, with proposed increases reaching as high as 3900%. The objective behind these proposed adjustments is to generate extra revenue aimed at addressing the budget shortfall reported by NTSA, which amounts to KSh 2.37 billion in the financial year ending on June 30.
NTSA aims to close this financial gap, taking into account not only the reported deficit but also the additional funds required for crucial road safety programs and the ongoing expenses related to the maintenance of ICT systems and licenses. The cumulative deficit as of June 30 stands at KSh 2.374 billion, as highlighted in a report by the Daily Nation, according to NTSA.
Which charges does NTSA propose to hike?
The most significant proposed fee increase involves the alteration of a motor vehicle’s color, with the cost soaring from KSh 500 to KSh 20,000, constituting a staggering 3,900% hike.
Motor vehicle dealers are set to face a substantial surge in license fees, jumping from KSh 4,200 to KSh 100,000, representing a notable increase of 2,281%. Simultaneously, pending approval, dealers in new motor vehicles may experience a renewal permit cost surge from KSh 4,200 to KSh 50,000.
According to a report by Citizen TV, driving schools are poised for a 150% annual license fee escalation, escalating from KSh 20,000 to KSh 50,000.
NTSA’s proposals also outline doubling the expense for replacing a lost or damaged log book, climbing from KSh 2,500 to KSh 10,000. Similarly, the cost of replacing a lost or damaged driving license is set to increase to KSh 1,000 from KSh 500.
Motorists seeking to convert their foreign licenses may now face a fee of KSh 10,000, a significant rise from the previous KSh 1,000.
Matatu operators are not exempt from the proposed fee adjustments. Passenger vehicles with a capacity of nine to 14 people would witness a doubling of license fees from KSh 3,200 to KSh 6,400. Meanwhile, those with a capacity of 15 to 25 passengers are expected to pay KSh 7,400, up from KSh 3,750.
Digital taxi operators are also in the line of impact, as license fees are slated for a 100% increase, surging from KSh 100,000 to KSh 200,000.