The National Transport and Safety Authority (NTSA) has issued a stern directive to motor vehicle dealers, mandating the registration of all unregistered vehicles in their possession by December 16, 2024. This move comes after the NTSA uncovered widespread non-compliance among dealers, who were found to be holding unregistered vehicles at their showrooms and yards, a violation of the Traffic Act, Cap 403.
In a public notice, NTSA Director General emphasized that the directive is part of a broader initiative to enhance accountability and ensure compliance with the law. “Following the completion of the initiative, the Authority notes that several motor vehicle dealers are holding UNREGISTERED vehicles within their premises contrary to the requirements of the Traffic Act,” the Director General stated.
Dealers at Risk of Severe Penalties
The NTSA has warned dealers that failure to comply with the directive will result in severe penalties, including the impounding of unregistered vehicles. Law enforcement agencies have been instructed to crack down on vehicles operating without registration plates or those illegally using Kenya Dealer (KD) plates. Additionally, the NTSA has affirmed that dealers and vehicle owners found in violation will face legal charges.
“To this end and through this Notice, the Authority directs all motor vehicle dealers to complete pending motor vehicle registration applications by Monday, 16th December 2024,” the notice reiterated.
The crackdown is part of a multi-agency revalidation exercise aimed at streamlining the motor vehicle dealership sector. The initiative brought together various government agencies, including the Kenya Revenue Authority (KRA), Financial Reporting Centre (FRC), Directorate of Immigration Services (DIS), and security agencies.
Objectives of the Initiative
The revalidation exercise sought to achieve multiple objectives, including:
- Ensuring compliance: Dealers were required to align with the provisions of the Traffic Act and other relevant laws.
- Curbing illegal operations: Non-compliant dealers operating without proper licenses or holding unregistered vehicles were identified for action.
- Improving accountability: The process aimed to enhance transparency in the motor vehicle industry by ascertaining the legitimacy of all vehicles within dealerships.
The NTSA is tasked with licensing and regulating motor vehicle and motorcycle dealers, a mandate critical for maintaining order in the automotive sector.
Industry Implications
The directive is expected to have significant implications for motor vehicle dealers across the country. Dealers must now expedite the registration process for all vehicles in their possession to avoid punitive actions. The NTSA’s firm stance reflects a broader effort to tighten regulatory oversight in the sector.
For consumers, the directive promises to instill greater confidence in the authenticity and legal standing of vehicles purchased from dealerships. Vehicles with complete registration offer assurance of compliance with tax and safety regulations, reducing the risk of future legal complications for buyers.
A Call for Dealer Compliance
As the December 16 deadline approaches, motor vehicle dealers are urged to act swiftly to meet the NTSA’s requirements. Dealers should ensure that all pending registration applications are completed without delay. Failure to comply not only risks financial penalties and vehicle impoundment but also damages the reputation of dealerships found in violation.
The NTSA has made it clear that there will be no leniency for non-compliance. “Law enforcement agencies are advised to impound vehicles operating without registration plates, those illegally using Kenya Dealer Plates (KD), and charge the respective dealers and owners,” the Director General emphasized.
Conclusion
The NTSA’s directive underscores the government’s commitment to ensuring compliance and order in the motor vehicle industry. Dealers are now under intense scrutiny, with the clock ticking toward the December 16 deadline. This initiative serves as a wake-up call for all stakeholders in the industry to prioritize adherence to legal and regulatory requirements, fostering a more accountable and transparent automotive sector in Kenya.
