Car dealers hit as NTSA tightens KD plate rules

A photo collage of NTSA vehicle and a KD plate/COURTESY

Car dealers and importers are grappling with fresh restrictions by the National Transport and Safety Authority (NTSA) on the use of KD number plates, with industry players warning of delays in vehicle deliveries and disruptions in operations.

The new rules limit the use of KD plates, commonly used on unregistered vehicles to specific functions such as test drives, towing and transfers between dealerships and clients.

The regulator has outlawed their use for personal errands, road trips or extended periods before registration.

A car dealer, Gladys, speaking in a video shared on TikTok, said the changes have affected both dealers and customers, noting that the industry had been relying on KD plates to facilitate movement of vehicles before full registration.

“Kenyan car dealers, now this is in regards to KD plates and we’ve all been hit, even us as the importers, we’ve been hit,” she said.

She explained that under the new framework, KD plates can only be used on vehicles registered under a dealership’s name, effectively ending the common practice where dealers used their plates on cars already registered to clients.

“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.

Gladys further noted that NTSA now requires that vehicles using KD plates must have comprehensive insurance, as opposed to the previously common third-party cover.

The dealer said the changes were partly driven by concerns over misuse and rising cases of theft involving unregistered vehicles.

“The biggest reason NTSA has come up with this rule is because of theft issues… if a car is stolen and it is not registered and does not have comprehensive insurance, that becomes a total loss,” she said.

She added that the rules also restrict who can drive vehicles fitted with KD plates, indicating that only authorised persons linked to the dealership, such as directors, are permitted to operate them.

The new requirements have disrupted logistics, particularly for importers moving vehicles from the port of Mombasa to showrooms or delivery points.

Dealers say they must now 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,” Gladys said.

The changes are also expected to slow down the car buying process, with customers likely to experience longer waiting periods before receiving their vehicles.

Despite the challenges, dealers acknowledged the need for regulation but said the transition has been abrupt.