NTSA Suspends Licensing of New Matatu SACCOs for Two Years, Freezes Route Expansion
News Updated: 20 June 2026 17:51 EAT
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The National Transport and Safety Authority (NTSA) has suspended the licensing of new matatu SACCOs and Public Service Vehicle (PSV) companies for a period of two years in a major policy shift aimed at improving compliance and strengthening road safety standards.
The directive also imposes a 12-month freeze on the approval of new transport routes and expansion of existing routes across the country.
NTSA said the decision follows growing concerns over persistent non-compliance among operators and challenges in enforcing transport regulations within the public service sector.
Under the directive, no new applications for PSV operator licences will be processed during the suspension period, effectively halting the entry of new matatu SACCOs into the market.
The authority stated that the route freeze will apply to requests involving route extensions, route variations and approvals for additional service corridors.
According to NTSA, continued growth of unregulated and poorly supervised transport operations has complicated enforcement efforts and increased safety risks for road users.
The regulator further noted that rapid route changes and expansion by operators have affected traffic management and created operational inefficiencies, particularly in urban centres.
During the moratorium period, NTSA plans to undertake a comprehensive review of the public transport sector to evaluate compliance levels and identify areas requiring regulatory reform.
The review process is expected to involve key stakeholders, including county governments and transport industry players, to develop long-term solutions for safer and more efficient public transport operations.
Existing licensed matatu SACCOs and PSV operators will continue offering services but will remain subject to stricter monitoring and enforcement measures.
NTSA said operators will be required to maintain full compliance with licensing conditions, vehicle inspection requirements and all applicable road safety regulations.
The authority maintained that the measures are intended to restore order in the sector and create a more structured operating environment.
The move marks one of the most significant interventions in Kenya’s public transport industry in recent years as authorities seek tighter control over licensing, route allocation and safety compliance.
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