Kenya’s public transport sector is set for a significant overhaul after the National Transport and Safety Authority (NTSA) announced a two-year suspension on the licensing of new matatu SACCOs and PSV companies across the country.
The move, which also halts the introduction of new routes and expansion of existing ones for 12 months, is aimed at restoring order, improving road safety, and streamlining operations within the industry.
In a public notice issued on Friday, June 19, NTSA Director General Eng. Nashon Kondiwa said the moratorium had become necessary due to persistent non-compliance within the sector and growing concerns over road safety.
According to the authority, the rise of unregulated operators has created unfair competition while also exposing commuters to increased risks on Kenyan roads.
Why NTSA Is Taking Action
The transport regulator noted that some operators have been bypassing licensing requirements, resulting in a fragmented public transport system that is difficult to monitor and enforce.
NTSA argues that the unchecked growth of operators has contributed to operational inefficiencies, insecurity, and unreliable transport services.
The authority further revealed that route modifications and expansion requests have in some cases led to inconsistencies in service delivery, prompting the decision to temporarily stop the creation of new routes while a comprehensive review is undertaken.
Under the new directive, no applications for PSV operator licences will be accepted or processed during the moratorium period.
However, SACCOs and transport companies already holding valid licences will continue operating as long as they comply with all safety and operational regulations.
Broader Reforms Planned
NTSA says the suspension is part of a wider strategy to reform Kenya’s public transport sector.
During the review period, the authority plans to conduct an extensive audit of traffic management systems, road safety compliance, and public transport operations in collaboration with county governments and industry stakeholders.
The regulator also intends to reassess existing transport corridors and determine which routes are economically viable and sustainable for operators and commuters alike.
The review is expected to guide future decisions on route allocation and sector regulation.
Prospective investors and operators have been encouraged to use the two-year period to submit proposals and recommendations that could help shape future transport policies and improve service delivery.
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A Sector Under Increasing Scrutiny
The latest directive comes amid heightened efforts by NTSA to improve road safety standards in the country.
In recent years, the authority has repeatedly suspended transport operators and SACCOs found violating safety regulations, including speed management requirements and vehicle inspection rules.
The agency has also intensified enforcement against rogue drivers and non-compliant public transport operators as part of a broader campaign to reduce accidents and fatalities on Kenyan roads.
Rising Road Deaths Raise Alarm
The crackdown comes against the backdrop of worrying road safety statistics.
NTSA recently introduced mandatory refresher training for drivers as authorities grapple with a surge in road crashes.
More than 2,000 people reportedly lost their lives in road accidents during the first half of 2026, with pedestrians and boda boda riders accounting for a significant proportion of the casualties.
Transport experts have long argued that stricter regulation of PSV operators is necessary to improve discipline within the sector and ensure passenger safety.
The government has also warned that rising road accidents could have severe economic consequences if left unchecked, including reduced productivity and increased healthcare costs.
What It Means for Commuters
For everyday commuters, the immediate impact may be minimal since existing licensed operators will continue providing services.
However, the suspension could slow the entry of new players into the market and temporarily limit expansion into underserved routes.
NTSA insists the move is designed to create a safer, more organized, and sustainable public transport system.
Once the review process is completed, the authority is expected to unveil new measures aimed at strengthening compliance, improving service quality, and enhancing passenger safety across Kenya’s matatu industry.
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