NAIROBI, Kenya – The government has approved the rollout of second-generation smart driving licences through a public–private partnership (PPP), marking a renewed push to modernise Kenya’s transport licensing system after years of delays and low uptake.
The decision was reached during a Cabinet meeting chaired by President William Ruto, with ministers agreeing that private sector participation could help fast-track delivery, improve efficiency and strengthen road safety enforcement.
Under the new system, the smart licences will be digitally integrated, allowing for instant fines, mobile licence wallets and a driver merit-and-demerit points framework — a shift the government says will enhance accountability on the roads.
“Through innovative financing, Cabinet approved the rollout of Second-Generation Smart Driving Licences under a public–private partnership, integrating smart licences with an instant fines system, mobile licence wallet and driver merit and demerit points to enhance road safety and modernise licensing,” the Cabinet dispatch said.
Years of delays and low uptake
The move comes against the backdrop of persistent challenges that have dogged the smart licence programme since its launch in 2017.
The chip-embedded cards were meant to replace paper-based driving licences, but implementation has fallen short of expectations.
According to a report submitted to the National Treasury, only 2.1 million smart driving licences have been issued against a target of five million.
The programme was initially implemented under a $21.09 million contract with the National Bank of Kenya (NBK), which was responsible for supplying and maintaining the cards. Access Bank Plc has since taken over NBK.
Despite the delivery of more than four million blank cards under the agreement, the Auditor-General recently flagged large stocks of unprinted and undelivered licences, pointing to management and operational challenges at the National Transport and Safety Authority (NTSA).
NTSA has attributed the slow uptake partly to motorists opting for cheaper yearly electronic driving licences rather than the three-year smart cards.
“The uptake of smart driving licences has been slow. The project is under consideration for transitioning to PPP,” the Transport department said in its budget submission.
Missed targets
In the financial year ending June 2025, NTSA printed 342,492 smart licences, missing its annual target of 400,000 by more than 57,000 cards.
While the previous year recorded higher-than-expected issuance due to intensified enrolment campaigns, officials admit demand has remained inconsistent.
“The target was not achieved due to preference for a yearly electronic driving licence as opposed to the three-year smart driving licence,” NTSA noted.
Government officials now believe that bringing in private investors could help overcome these bottlenecks, accelerate issuance and finally complete the long-delayed modernisation of the licensing system.
Phased rollout
Initial deployment of the second-generation smart licences will focus on major urban centres and key transport corridors, including Nairobi, Mombasa, Kisumu, Nakuru, Eldoret and selected border counties.
In the same meeting, Cabinet also approved the establishment of the National Integrated Security Command and Control System, a platform designed to link security agencies for real-time intelligence sharing and coordinated national responses.
