Motorists, car dealers face higher charges on NTSA’s revenue push

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

A proposal by the transport sector regulator said it has been reporting a deficit in its financial performance over time with a shortfall of Sh550 million in the financial year that ended June 30, 2023 alone.

“This gap excludes additional funds required to finance the key road safety programmes and recurrent cost of maintenance of ICT systems and licenses for the same. The cumulative deficit as of June 30, 2023, was Sh2,374million” NTSA said.

“The total funding gap under development is Sh400million with Sh250million required for the smart driving license and Sh150million for counterpart funding under the development partners” it added.

To bridge the deficit, NTSA is now proposing a drastic increase in the cost of 45 services rendered– including a 3,900 percent increase on what one would pay for the approval of a change of colour of a motor vehicle from Sh500 currently to Sh20,000.

The regulator also proposes to go hard on used motor vehicle dealerships with a proposed new license fee of Sh100,000 up from Sh4,200 presently—marking a 2,281percent jump if the suggested rates are approved.

Renewal of a permit as a used motor vehicle dealer is also set to jump by 1,090 percent to Sh50,000 from Sh4,200 currently.

Dealers in new motor vehicles face a revised permit fee of Sh100,000 up from Sh4,200 present while it would cost them Sh50,000 to renew the permit, up from Sh50,000 currently.

In the proposed charges, obtaining a normal number plate from NTSA would cost Sh5,000 compared to Sh3,000 presently while a PSV badge would go for Sh1,500 from Sh1,000 currently. A speed limiter will go for Sh150,000 in the new price schedule up from Sh50,000 currently.

The NTSA has also introduced new revenue streams including inspection of accident vehicles that will done fopr Sh1,500, inspection center license (Sh200,000 annually) and motor vehicle license(Sh3,000).

“The motor vehicle inspection fees should be revised to the optimal levels that reflect economic realities and the value of the motor vehicles being assessed, that could be charged as per the various categories for existing commercial motor vehicles” NTSA said.

Renewal of a license of a Class A driving school would cost Sh50,000 from Sh20,000 presently while one would pay Sh10,000 to renew the permit of a Class C one from Sh5,000 today.

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