The National Transport and Safety Authority (NTSA) has imposed a two-year moratorium on the licensing of new public transport operators, effectively freezing the registration of new matatu Saccos and transport companies across the country.
In a public notice, the authority announced a 24-month suspension on the licensing of new Public Service Vehicle (PSV) operators, while also halting the addition of new routes and extension of existing routes for 12 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,” NTSA said in the notice.
The authority further stated that there will be a freeze on the addition of new routes and existing route extension for a period of 12 months and the modification or reconfiguration of existing licensed routes including changes to pick and drop points for a period of 12 months.
NTSA attributed the move to persistent safety concerns and widespread non-compliance within the public transport sector.
According to the authority, the decision was necessitated by persistent non-compliance and road safety concerns within the sector and 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.
The regulator also cited its ongoing efforts to strengthen oversight of the sector.
“The Authority’s plan to strengthen oversight, enhance the transport management systems, and implement broader sector reforms” informed the decision, NTSA said.
It further noted that frequent route modifications had created instability in public transport operations.
The authority pointed to the modification of routes that has resulted in inconsistency and unreliable public transport services as another reason for the moratorium.
During the suspension period, NTSA said it will undertake a nationwide audit of road safety compliance and traffic management systems in consultation with stakeholders and county governments.
“During this period, the Authority, in consultation with relevant stakeholders and with the support of the County Governments, shall conduct a comprehensive audit of road safety compliance and traffic management,” the notice states.
The regulator added that it will assist existing operators to improve service standards and meet road safety requirements while working with county governments to redefine “consistent and profitable routes.”
NTSA clarified that no new applications for PSV operator licences will be accepted or processed during the moratorium.
“This decision applies to all prospective operators intending to be licensed by the Authority,” it said.
However, existing licensed operators will continue operating, provided they comply fully with safety, licensing and operational standards.
The moratorium takes effect from June 19, 2026, and prospective investors have been encouraged to use the period to submit memoranda and proposals aimed at improving road safety and the management of public transport in the country.
){kind=link}