NTSA Halts Licensing of New PSV Operators in 24-Month Moratorium

The National Transport and Safety Authority (NTSA) in Kenya has imposed a 24-month moratorium on the licensing of new Public Service Vehicle (PSV) operators, effective June 19, 2026. This directive, issued under the NTSA Act, 2012, and the NTSA (Operation of Public Service Vehicles) Regulations, 2014, aims to address persistent non-compliance, enhance road safety, and streamline the public transport sector. The moratorium also includes a 12-month freeze on the approval of new routes, extensions, and modifications to existing routes. During this period, the NTSA plans to conduct a comprehensive audit of road safety compliance and traffic management systems, while encouraging existing operators to improve service standards. The move signifies a significant regulatory intervention designed to curb illegal operations and foster a more structured and safer public transport environment.

Kenya's public transport sector is set for a significant shake-up following a recent directive from the National Transport and Safety Authority (NTSA). Effective June 19, 2026, the NTSA has implemented a 24-month moratorium on the licensing of all new Public Service Vehicle (PSV) operators, encompassing both Saccos and companies. This sweeping measure is part of a broader regulatory reform aimed at tackling long-standing issues within the sector, including rampant non-compliance, escalating road safety concerns, and the proliferation of unlicensed operators.

The moratorium extends beyond just new operator licenses, also imposing a 12-month freeze on the approval of new routes and extensions to existing ones, with a provision for review if new roads are commissioned. Furthermore, modifications or reconfigurations of existing licensed routes, including changes to pick-up and drop-off points, have been halted for a similar 12-month period. This article delves into the legal underpinnings of this moratorium, its immediate implications for legal practitioners and the transport industry, and the anticipated long-term effects on Kenya's public transport landscape.

The regulatory framework governing public transport in Kenya is primarily established by the National Transport and Safety Authority Act, 2012 (NTSA Act) and the Traffic Act (Cap 403). The NTSA Act mandates the Authority with the responsibility for road safety management and the regulation of the public transport sector, including the licensing of PSV operators and drivers. Subsidiary legislation, such as the NTSA (Operation of Public Service Vehicles) Regulations, 2014, provides detailed provisions for the application, issuance, and conditions of PSV operator licenses and route approvals.

Historically, the PSV sector in Kenya has been plagued by challenges such as route indiscipline, fierce competition, and the emergence of informal and often unsafe operators. The NTSA has previously undertaken various enforcement actions, including the suspension of licenses for non-compliant operators and increased scrutiny of vehicle safety standards. These efforts underscore a continuous struggle to bring order and safety to a vital but often chaotic industry. The current moratorium is presented as a more drastic, albeit temporary, intervention to allow for a systemic overhaul and address the root causes of these persistent issues.

The NTSA's decision to implement a 24-month moratorium on new PSV operator licenses is grounded in its statutory mandate under the NTSA Act, 2012, and the NTSA (Operation of Public Service Vehicles) Regulations, 2014. These legislative instruments empower the Authority to regulate the public transport sector, including the power to issue, suspend, or revoke licenses in the public interest. The stated reasons for the moratorium—persistent non-compliance, road safety concerns, the proliferation of illegal operators, and inconsistent route modifications—fall squarely within the NTSA's purview of ensuring public safety and orderly transport management.

From a legal perspective, the moratorium, while significant, appears to be an exercise of the NTSA's regulatory powers to address systemic failures. The NTSA Act, for instance, grants the Authority broad powers to make regulations for the better carrying out of the provisions of the Act, which would include measures to enhance road safety and efficient transport services. The temporary nature of the moratorium, coupled with the stated intention to conduct audits and stakeholder consultations, suggests a remedial rather than punitive approach. However, the immediate impact on prospective new entrants to the PSV market is substantial, as no new applications will be accepted or processed during this period.

The restrictions on new routes, extensions, and modifications also highlight the NTSA's intent to rationalize the existing route network. This could lead to a more structured and potentially less competitive environment for existing operators, but also raises questions about flexibility and responsiveness to evolving transport needs. The NTSA's commitment to work with county governments and stakeholders during this period is crucial, as effective implementation will require coordinated efforts and buy-in from various actors within the transport ecosystem. The success of this moratorium will largely depend on the NTSA's ability to leverage this period for meaningful reforms and to enforce compliance effectively once the suspension is lifted.

The NTSA's 24-month moratorium on new PSV operator licenses represents a critical juncture for Kenya's public transport sector. For legal practitioners, this directive necessitates a thorough understanding of its scope and implications. Attorneys advising clients in the transport industry, particularly those contemplating entry into the PSV market, must inform them that no new applications for operator licenses, route approvals, or route modifications will be processed until June 2028.

Existing PSV operators must ensure strict adherence to all safety, licensing, and operational requirements, as the NTSA has indicated that compliance audits will be a key activity during this period. Furthermore, prospective investors and stakeholders are encouraged to engage with the NTSA by submitting proposals aimed at improving road safety and transport management, signaling an opportunity for collaborative reform. The outcome of this moratorium will profoundly shape the future regulatory landscape of public transport in Kenya, making it imperative for all legal and industry players to closely monitor developments and adapt their strategies accordingly.