Mombasa Motor Dealers Challenge NTSA's Harsh KD Plate Enforcement, Cite Business Disruption

Mombasa-based motor vehicle dealers are at their wit's end over what they see as a brutal crackdown by the National Transport and Safety Authority's (NTSA) regulations involving Kenya Dealer (KD) number plates. The changes are disrupting business as usual and threatening the very existence of hundreds of these small to medium-sized dealerships.

The Good Guys Are Also Getting Blamed

While these dealers fully support any efforts to keep the roads safe and to prevent those who might be misusing dealer plates from getting a free pass, they're getting fed up with the way NTSA has gone about enforcing the rules. As you'd expect, it's creating all sorts of operational headaches for these independent trading businesses.

"We 100% get why NTSA is trying to keep the roads safe, but the way they're implementing these regulations is just crazy," said Mathew Kilu, Secretary-General of the Independent Motor Vehicle Dealers Association. "It's caused us so many problems and is really putting our business at risk."

Its All About The Rules - Or Is It?

At the core of this problem lies the NTSA's new procedures, which were introduced on April 11. These procedures are requiring dealers to provide all sorts of details - import entry information, dealer license info and importer particulars - just to get a movement permit. The trouble is the NTSA system only accepts company details, not individual ones.

"It's a nightmare, to be honest," said Kilu. "Vehicles are already registered before they leave the CFS facilities and the NTSA system doesn't even have the capacity to recognize individual traders, which puts our clients who are individual importers at a huge disadvantage"

It Can Happen To Anyone

Dealers are worried that at any time they could be arrested by the authorities for doing their job, with no rhyme or reason. Isaac Omollo had a particularly harrowing experience when he was stopped in transport a vehicle with a KD plate while on his way to Mtito Andei and was treated like a common crook.

"It was disgusting, to be honest," he said. "Despite following all the rules to the letter I was treated like some kind of common thief. It really left me shaken up".

Nicholas Wambua feels that regulators are unfairly discriminating against independent dealers and are treating them like second-class citizens. He points out that independent traders pay good money for licenses and are just as entitled to KD plates as larger companies.

"There should be no one-size-fits-all approach," he said. "We are just as entitled to KD plates as bigger companies and we contribute a lot to the economy. It's time they levelled the playing field".

Financially it's a Mess

Dealers are saying that the financial implications of all this are adding up fast. KD plates cost Sh37,000, but when the rules changed in April many licenses were suddenly revoked, leaving traders with no way to use them. To make matters worse, in some cases the allocations were still active in the system, which just added to the confusion.

"It's just unbelievable," said Kilu. "We've paid for these plates but now we can't use them. We're losing thousands of shillings every day because we can't even get our vehicles out of the storage yards.

And the costs don't stop there - traders are having to pay storage fees at the port and CFS facilities which are eating into their profits and vehicle depreciation due to the extended delays is also taking its toll. As a result, they're having to sell vehicles at a loss, which is bad news for consumers who end up paying even more for their vehicles.

A Chance To Fix Things

Dealers are calling on NTSA to find some solutions to the problems they're facing. Their proposal is that the NTSA needs to sort out its permit generation procedures to create a smoother process for all concerned. They also think that the regulator should be able to recognize individual dealers and not just companies.

"We get that there have been cases of abuse and the people who are responsible for that should be punished," said Kilu. "But it's time the NTSA and the government worked with us to find a solution that benefits everyone."