The National Transport and Safety Authority (NTSA) has announced a temporary freeze on the registration of new public service vehicle operators, effectively barring new matatu Saccos and companies from entering the market for the next two years. NTSA has frozen the registration of new matatu SACCOs for 24 months. The moratorium, issued under the NTSA Act, 2012 and the NTSA (Operation of Public Service Vehicles) Regulations, 2014, takes effect from June 19, 2026. The freeze comes amid growing concerns over persistent non-compliance, road safety risks, and the proliferation of illegal operators who undermine regulated players and create significant safety hazards. The authority has also suspended the addition of new routes and extension of existing routes for 12 months, though this may be reconsidered in the event a new road is commissioned. What does the moratorium entail? The NTSA has imposed a temporary moratorium on three key areas. First, the licensing of new public transport operators, both Saccos and companies, has been suspended for a period of 24 months. Second, the addition of new routes and extension of existing routes has been frozen for 12 months, with a provision for reconsideration in the event a new road is commissioned.
Third, the modification or reconfiguration of existing licensed routes, including changes to pick and drop points, has been suspended for 12 months. During this period, no new applications for PSV operator licenses will be accepted or processed. The decision applies to all prospective operators intending to be licensed by the Authority. Why has NTSA imposed the freeze? The Authority cited several reasons for the moratorium. These include persistent non-compliance and road safety concerns within the sector, the proliferation of illegal operators who undercut regulated players by creating significant road safety risks, enabling insecurity, and engaging in unfair competition against licensed operators. NTSA plan to strengthen oversight, enhance transport management systems, and implement broader sector reforms. The NTSA stated that during the moratorium period, in consultation with relevant stakeholders and with the support of county governments, it shall conduct a comprehensive audit of road safety compliance and traffic management while also assisting existing operators to improve their service standards to meet road safety requirements. However, the freeze also raises questions about market competition and consumer choice. With no new operators allowed to enter the market for two years, existing operators may have less incentive to improve service quality, and passengers may face limited options.
