NTSA Under Fire Over Unfair 21-Year Smart Licence Contract With Private Firms

The National Transport and Safety Authority (NTSA) is under intense parliamentary scrutiny for signing a 21 year Public Private Partnership deal with a private consortium led by PesaPrint for second generation smart driving licences and an automated instant fine system. MPs on the National Assembly Public Debt and Privatisation Committee chaired by Abdi Shurie have described the revenue sharing framework as grossly unfair and heavily tilted against public interest.

Under the agreement private partners would retain about 77.4 percent of projected revenues while the government receives less than a quarter over the entire contract period. Projected revenues stand at around 900 billion shillings against costs of 300 billion shillings giving private firms a 300 percent profit margin. The deal also includes plans to install 1 000 surveillance cameras nationwide to automate traffic enforcement and is estimated to cost the economy 460 billion shillings annually.

NTSA Director General Nashon Kondiwa defended the PPP model citing chronic underfunding from the National Treasury. He explained that under the previous government funded system only 2.7 million licences were issued over nearly nine years against a target of five million. Kondiwa added that 60 percent of NTSA revenue is remitted to the Exchequer limiting reinvestment in road safety.

Legislators rejected the justification pointing to strong past returns. Between 2017 and 2024 the government invested 1.2 billion shillings and generated 6.7 billion shillings. Wajir East MP Aden Daudi was particularly vocal saying this is a PPP that is so unfair to the public and so fair to the private part of the equation. He questioned who would negotiate away 77 percent of public revenue to a private entity for 21 years.

The consortium includes KCB Bank following its acquisition of National Bank of Kenya. MPs noted that the smart licence technology is similar to that used for national IDs which operate under a fully public model. The committee has resolved to obtain the final contract and summon the PPP Unit at the Treasury to explain the apparent bypass of competitive procurement. Kondiwa pledged to review the agreement architecture and re engage stakeholders