NTSA Suspends Licensing of New Public Transport Operators Until 2028

The National Transport and Safety Authority (NTSA) has announced a temporary moratorium on the licensing of new public service vehicle (PSV) operators, halting the approval of new transport Saccos and companies for the next two years.

In a notice dated June 23, NTSA said the directive, which took effect on June 19, is part of a wider effort by the Authority to address road safety concerns, eliminate illegal operators, and improve the management of Kenya’s public transport system.

According to the authority, no new public transport operators, including Saccos and companies seeking PSV operator licences, will be licensed for a period of 24 months.

“ The Authority, in exercising its mandate under the NTSA Act, 2012 and the NTSA (Operation of Public Service Vehicles) Regulations, 2014, hereby issues a temporary moratorium on the licensing of new public transport operators (Saccos and Companies) for a period of 24 months,” read part of the notice.

NTSA Suspends New PSV Operator Licences Until 2028

The Authority further clarified that no new applications for PSV operator licences will be accepted or processed during the moratorium period.

“This decision applies to all prospective operators intending to be licensed by the Authority,” NTSA stated.

However, existing licensed operators will continue operating, provided they remain fully compliant with safety, licensing, and operational requirements.

NTSA also imposed a 12-month freeze on the introduction of new routes and the extension of existing routes.

The Authority noted that the restriction may be reviewed if new roads are commissioned during the period.

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Additionally, NTSA highlighted that operators will not be allowed to modify or reconfigure existing licensed routes, including changing designated pick-up and drop-off points, for one year.

The authority argued that frequent route modifications have contributed to inconsistencies and unreliable public transport services.

It further attributed the move to persistent non-compliance and road safety concerns within the public transport sector.

Call For Proposals to Improve Roads

NTSA also raised concerns over the growing number of illegal operators who undermine licensed transport providers through unfair competition while creating significant safety and security risks.

“The proliferation of illegal operators who undercut regulated players by creating significant road safety risks, enabling insecurity, and engaging in unfair competition against licensed operators” was cited as one of the reasons for the moratorium.

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The Authority added that the measure will provide an opportunity to strengthen transport management systems and implement wider sector reforms.

In addition, NTSA said it will also support existing operators in improving service standards and complying with road safety requirements.

The authority encouraged prospective investors and transport operators to use the period to submit proposals and recommendations aimed at improving road safety and enhancing the management of public transport in Kenya.

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NTSA Suspends New PSV Operator Licences for Two Years. Photo/ file