NTSA suspends licensing of new PSV operators for two years

The National Transport and Safety Authority (NTSA) has announced a temporary suspension on the licensing of new Public Service Vehicle (PSV) transport operators and the expansion of existing routes, citing road safety concerns, regulatory challenges and the need for comprehensive sector reforms.

In a public notice issued on June 19, 2026, the Authority said the move is aimed at strengthening oversight, improving transport management systems and enhancing safety standards across Kenya’s public transport sector.

Under the directive, NTSA has suspended the licensing of new public transport operators, including Saccos and companies, for a period of 24 months. The Authority has also halted the addition of new routes and extension of existing routes for 12 months.

Modifications or reconfiguration of existing licensed routes, including changes to pick-up and drop-off points, have similarly been suspended for one year.

“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,” the notice stated.

NTSA said the decision was informed by persistent non-compliance within the PSV sector and growing road safety concerns. The Authority also pointed to the proliferation of illegal operators, whom it accused of undermining licensed transport providers while creating security and safety risks for commuters.

“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 among the factors that necessitated the moratorium, according to the notice.

The Authority further noted that frequent route modifications had contributed to inconsistencies and unreliable public transport services, making it difficult to maintain order and efficiency within the sector.

During the moratorium period, NTSA said it would undertake a comprehensive audit of road safety compliance and traffic management systems in consultation with stakeholders and county governments.

The review will also seek to support existing operators in improving service standards and meeting road safety requirements.

“The Authority’s plan is to strengthen oversight, enhance transport management systems, and implement broader sector reforms,” the notice said.

NTSA added that it would collaborate with county governments to redefine transport routes to ensure they are both consistent and commercially viable.

The Authority clarified that no new PSV operator licence applications will be accepted or processed during the moratorium.

However, existing licensed operators will continue operating, provided they maintain full compliance with safety, licensing and operational requirements.

Prospective investors and operators have been encouraged to use the period to submit proposals and memoranda aimed at improving road safety and the management of public transport services in the country.

The moratorium takes effect immediately from June 19, 2026, and is expected to significantly reshape Kenya’s public transport sector as regulators pursue reforms aimed at enhancing safety, efficiency and accountability on the nation’s roads.