The National Transport and Safety Authority (NTSA), the National Assembly’s Budget and Appropriations Committee has put forth a proposal that could see the agency retain funds collected from motor vehicle transfers. This recommendation, outlined in the 2024/2025 budget report, aims to ensure that the NTSA can effectively run its programs despite significant budget cuts from the national exchequer.
The proposal comes in the wake of a notable 30 percent reduction in NTSA’s budget, coupled with a complete withdrawal of exchequer funding. Historically, the NTSA has collected funds from motorists, including fees from motor vehicle transfers, and subsequently remitted these funds back to the national government. The committee, chaired by Ndindi Nyoro, highlighted that allowing the NTSA to retain these funds would mitigate the adverse effects of the budget cuts on the authority’s performance targets.
“The Committee on Transport and Infrastructure observed that this would adversely affect the Authority on the attainment of its performance targets. This is especially given that the Authority is allowed to retain only 9 revenue streams against the 42 revenue streams that they charge,” the report noted.
Motor vehicle transfers, facilitated by the NTSA, come with varying charges depending on the vehicle’s engine capacity, typically ranging from Ksh2,200 to Ksh7,000. Under the new proposal, these funds would be retained by the NTSA, providing a much-needed financial boost to the agency.
To implement these changes, the committee has recommended that the Treasury Cabinet Secretary, Njuguna Ndung’u, approves the retention of these funds. Specifically, the MPs have set a deadline of September 30, 2024, for the Cabinet Secretary to enhance the Appropriation in Aid (AIA) for the NTSA, thereby officially granting approval for the retention of revenue from motor vehicle transfers.
The Ndindi Nyoro-led committee believes that this financial autonomy will enable the NTSA to maintain and improve its service delivery and operational efficiency, ensuring that the authority can continue to fulfill its mandate effectively despite the budgetary constraints.
As the proposal awaits approval, stakeholders within the transport sector are hopeful that this financial strategy will provide a sustainable solution to the funding challenges faced by the NTSA, ultimately contributing to better regulatory and safety outcomes on Kenya’s roads.
