NTSA Suspends Licensing of New Matatu SACCOs

The National Transport and Safety Authority (NTSA) has announced a two-year suspension on the licensing of new matatu SACCOs and public service vehicle (PSV) companies as part of measures aimed at enhancing road safety and streamlining the public transport sector.

In a notice issued on Thursday, NTSA said the decision was made in accordance with the National Transport and Safety Authority Act, 2012, and the NTSA (Operation of Public Service Vehicles) Regulations, 2014.

The authority also announced a 12-month suspension on the allocation of new routes and extension of existing routes. However, it noted that the decision may be reviewed if new roads are commissioned during the period.

In addition, NTSA suspended the modification or reconfiguration of existing licensed routes, including changes to pick-up and drop-off points, for a period of 12 months.

According to the authority, the measures were necessitated by persistent non-compliance and growing road safety concerns within the PSV sector.

NTSA cited the proliferation of illegal operators who undermine regulated transport providers through unfair competition while posing significant risks to road safety and public security.

The authority further said the move will allow it to strengthen oversight mechanisms, improve transport management systems and implement broader reforms within the sector.

NTSA also noted that frequent route modifications have contributed to inconsistencies and unreliable public transport services.

“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, while also assisting existing operators to improve their service standards to meet road safety requirements. The Authority will also be working with County Governments to redefine consistent and profitable routes,” NTSA said.

Under the directive, no new applications for PSV operator licences will be accepted or processed during the moratorium period.

The authority clarified that the decision applies to all prospective operators seeking licensing, while existing licensed operators will continue providing services subject to full compliance with safety, licensing and operational standards.

NTSA also encouraged prospective investors and transport operators to use the period to submit memoranda and proposals aimed at promoting road safety and improving the management of public transport in the country.

The moratorium took effect from June 19, 2026.