Motor vehicle dealers in Mombasa have raised alarm over what they describe as harsh enforcement of National Transport and Safety Authority (NTSA) rules governing Kenya Dealer (KD) number plates, saying the changes have disrupted their businesses and left many counting losses.
The dealers say that while they support efforts to improve accountability and curb misuse of dealer plates, the latest interpretation of the regulations has created operational challenges that threaten the survival of hundreds of small and medium-sized dealerships.
Independent Motor Vehicle Dealers Association Secretary-General Mathew Kilu said the changes have made it increasingly difficult to move imported vehicles from the Port of Mombasa and Container Freight Stations (CFS) to showrooms and customers.
“We fully support NTSA’s mandate of ensuring road safety and compliance, but the current implementation of these regulations has created operational challenges that have profoundly disrupted our business operations,” said Mr Kilu.
He explained that many vehicles imported by individual buyers are registered in the owners’ names before leaving the port, making it difficult for dealers to obtain movement permits under the new system.
“The problem is that vehicles are registered before they leave the CFS facilities. Individual importers cannot access the NTSA platform because the system only recognises companies. Yet many of our clients are individual importers who rely on us to facilitate the movement of their vehicles,” he said.
According to Mr Kilu, the requirement linking customs entry numbers to specific dealer details has created unnecessary bureaucracy and delays.
“We support the use of customs entry numbers for accountability purposes, but it should not be tied to a particular importer because individual importers are not licensed dealers and cannot generate movement permits. This has become a major bottleneck,” he added.
The dealers say the problem began after NTSA introduced new measures on April 11, 2026, requiring dealers to provide import entry details, dealer licence information and importer particulars when seeking movement permits.
They argue that the changes have effectively locked out independent dealers who handle vehicles imported by individual buyers.
Arrests, delays
The frustrations have been compounded by reports of arrests involving traders using KD plates.
One dealer, Isaac Omollo, said he was arrested in Mtito Andei while transporting a vehicle fitted with a KD plate.
“I was arrested in Mtito Andei for using a KD number plate despite the fact that I was carrying out normal dealership business,” said Mr Omollo.
“The authorities treated us like criminals, yet we had followed the procedures that have been in place for years. We need clarity because dealers are now operating in fear.”
Another dealer, Nicholas Wambua, accused regulators of discriminating against independent traders by allowing only companies to access and use KD plates.
“There should not be discrimination against individual dealers. We are licensed traders just like the larger companies, and we contribute significantly to the economy,” said Mr Wambua.
“The demand that only companies should access KD plates is unfair because many indigenous dealers operate as individuals. The regulations are favouring larger players while locking out smaller dealers.”
The traders argue that independent dealers form a significant portion of Kenya’s motor vehicle industry and support thousands of jobs.
They say the restrictions are creating an uneven playing field by concentrating business opportunities among a few established dealerships while disadvantaging smaller indigenous traders.
Rising costs
Despite being licensed by NTSA, dealers say the changes were introduced without adequate consultation.
Mr Kilu claimed that many dealers have effectively been locked out of using licences they paid for.
“We pay Sh37,000 for every KD number plate. Then in April our licences were revoked, allocations remained in the system, and some dealers were later arrested for using the same numbers they had legally paid for,” he said.
“It doesn’t make sense that we pay for KD plates, but we cannot use them. We are losing money every day because vehicles remain stuck in storage yards while customers continue waiting.”
Industry players say the restrictions have increased operational costs through prolonged storage charges at the port and CFS facilities.
Vehicles that cannot be moved promptly continue attracting storage fees, while delays in registration affect financing arrangements with banks and other lenders.
The dealers further argue that prolonged delays lead to depreciation, forcing traders to sell vehicles at lower prices and eroding profit margins.
As the standoff continues, dealers warn that consumers could ultimately bear the cost through delayed deliveries and higher vehicle prices.
Despite their frustrations, the traders insist they are not opposed to regulation and are ready to work with NTSA to address concerns over misuse of dealer plates.
“We acknowledge there have been cases where KD plates were abused, and those responsible should be punished,” said Mr Kilu.
The dealers are now calling on NTSA to engage stakeholders and develop a framework that allows legitimate vehicle movement from the port while maintaining accountability.
Among their proposals are streamlined permit-generation procedures, recognition of independent dealers within the regulatory framework and transitional guidelines for vehicles imported under customers’ names.
