NAIROBI, Kenya — Car dealers and importers are facing operational disruptions following new restrictions by the National Transport and Safety Authority (NTSA) on the use of KD number plates, a move aimed at tightening compliance but which industry players say is slowing vehicle deliveries.
The regulator has limited the use of KD plates — traditionally used on unregistered vehicles — to specific functions such as test drives, towing, and transfers between dealerships and clients. Their use for personal errands, road trips, or prolonged periods before registration has now been outlawed.
Industry players say the directive marks a significant shift from past practice, where KD plates were widely used to facilitate movement of imported vehicles before full registration.
A car dealer, identified as Gladys, said the changes have affected both dealers and customers, particularly in cases where vehicles are already registered under a buyer’s name.
“So if I’ve imported a car for a client and the car is in the client’s name, then it doesn’t qualify to have a dealership KD on it. That one is violating the rule,” she said in a video shared online.
Under the new framework, KD plates can only be used on vehicles registered under a dealership’s name, effectively ending the common workaround that allowed dealers to temporarily assign their plates to customer-owned vehicles awaiting completion of documentation.
The directive also introduces stricter insurance requirements, mandating comprehensive cover for vehicles operating under KD plates. Previously, many dealers relied on third-party insurance, which is cheaper but offers limited protection.
Dealers say the changes were partly driven by rising cases of theft involving unregistered vehicles. Without comprehensive insurance, stolen vehicles often result in total losses, exposing both dealers and buyers to financial risk.
“The biggest reason NTSA has come up with this rule is because of theft issues,” Gladys said, adding that the new framework enhances traceability and accountability in the sector.
In addition, NTSA has tightened rules on who may operate vehicles fitted with KD plates, restricting their use to authorised individuals linked to the dealership, such as directors or designated staff.
The impact is already being felt along the importation chain, particularly in the movement of vehicles from the Port of Mombasa to showrooms and delivery points. Dealers now report delays as they wait for full registration — including issuance of logbooks and number plates — before releasing vehicles to customers.
“We had cars at the port that we were sure we would release for delivery, but now we have to wait for logbooks and number plates,” the dealer said.
The changes are expected to slow down the car buying process, with customers likely to experience longer waiting periods before taking possession of their vehicles.
However, some consumers have welcomed the move, arguing it could eliminate exploitative practices. One buyer noted that certain dealers had been charging up to Sh2,000 per day for the use of KD plates, despite their intended purpose being limited to vehicle delivery.
The crackdown forms part of broader regulatory efforts to enforce compliance and curb misuse within the motor vehicle sector. While the measures are likely to enhance accountability, industry stakeholders say the abrupt implementation has left dealers scrambling to adjust operations.
