The National Transport and Safety Authority (NTSA) has announced a two-year freeze on the registration of new matatu Saccos and public service vehicle (PSV) companies in a move aimed at streamlining operations and improving safety standards in the public transport sector.
In a public notice issued on Friday, June 19, the authority said no new PSV operators will be licensed for the next 24 months as it seeks to address persistent compliance challenges that have continued to plague the industry.
The directive affects all new Saccos and companies seeking to operate public service vehicles across the country.
At the same time, NTSA has suspended the introduction of new matatu routes and the extension of existing ones for a period of one year. The only exception will be in cases where a new road is officially commissioned during the moratorium period.
Further, the operators are not allowed to make any changes to the current routes that have been licensed, and even change the pick-up and drop-off points for a period of one year.
NTSA says that the ban is part of wider efforts being made by the body to bring some order in the industry in light of concerns over road safety.
“The authority hereby issues a temporary moratorium on the licensing of new public transport operators (Saccos and Companies) for a period of 24 months,” said NTSA Director General in the statement.
“The authority also imposes a 12-month moratorium on the addition of new routes and the extension of existing routes, subject to review where a new road is commissioned,” the notice added.
The latest directive is expected to have a significant impact on the matatu industry, particularly for investors seeking to enter the sector and operators looking to expand into new routes.
NTSA maintains that the restrictions are necessary to strengthen oversight and improve compliance as the regulator pushes for safer and more orderly public transport operations across the country.