NTSA Slaps 24-Month Ban on New Matatu Sacco Registrations

Kenya's road transport regulator has issued a sweeping two-year freeze on the licensing of new public service vehicle operators, a move that will shut the door on new Saccos and companies seeking to enter the matatu sector.

The National Transport and Safety Authority (NTSA) announced the moratorium through a public notice dated Friday, June 19, 2026, citing persistent non-compliance and growing road safety concerns as the primary triggers.

Under the directive, no new applications for public service vehicle (PSV) operator licences will be accepted or processed for the duration of the 24-month period. The freeze applies to all prospective operators, including those who had already expressed interest in being licensed by the authority.

Alongside the licensing ban, NTSA has imposed a separate 12-month suspension on the addition of new routes and extensions of existing ones. The only exception is if a new road is officially commissioned during that period. Modification or reconfiguration of existing licensed routes, including changes to pick-up and drop-off points, is also frozen for 12 months.

The regulator pointed to the proliferation of illegal operators as a key driver of the decision. According to NTSA, unlicensed PSV operators have been undercutting regulated players, contributing to insecurity, unfair competition, and unsafe conditions for passengers.

Route modification has also been flagged. NTSA said uncontrolled route changes have produced inconsistent and unreliable public transport services across the country, undermining efforts to maintain order in the sector.

Existing licensed operators are not affected by the freeze and may continue running their services, subject to full compliance with safety, licensing, and operational standards set by the authority.

During the moratorium, NTSA says it will conduct a comprehensive audit of road safety compliance and traffic management operations, working in consultation with county governments and sector stakeholders. The authority has also indicated it intends to use the period to redefine consistent and profitable routes across the network.

Prospective investors and operators have been encouraged to use the window to submit memorandums and proposals to the authority on how to improve public transport management and road safety in Kenya.

The decision will have immediate implications for thousands of Kenyans who work or intend to work in the public transport sector. The matatu industry, which includes drivers, conductors commonly known as makangas, and Sacco administrative staff, is one of the largest informal employment sectors in urban Kenya.

Kenya's matatu sector has historically been difficult to regulate, with operators frequently flouting safety rules, overloading vehicles, and operating outside licensed routes. The NTSA moratorium represents one of the more direct interventions the regulator has made in recent years to arrest the deterioration in compliance across the industry.