Facing a substantial budget deficit exceeding Sh2.37 billion, the National Transport and Safety Authority (NTSA) is advocating for a substantial restructuring of its service charges, contemplating increases of up to 3,900 per cent.

The regulator attributes its financial strain to a persistent deficit, with the fiscal year ending June 30, 2023, revealing a shortfall of Sh550 million and a cumulative gap of Sh2,374 million.

In a bid to address these financial challenges, the NTSA is suggesting noteworthy adjustments to fees for 45 services.

One of the most dramatic proposals includes a staggering 3,900 per cent surge in the cost of approving a vehicle's colour change, catapulting the current fee of Sh500 to Sh20,000.

For second-hand car dealers, a substantial burden may be imposed, with a proposed license fee surge from Sh4,200 to Sh100,000, marking a noteworthy 2,281 per cent escalation.

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Renewal fees for used car dealer licenses could witness a remarkable 1,090 per cent increase to Sh50,000 from the current Sh4,200.

Similarly, new motor vehicle dealers may encounter heightened registration fees, potentially soaring from Sh4,200 to Sh100,000, accompanied by a license renewal cost of Sh50,000.

The proposed fee adjustments extend across various services, encompassing the replacement of lost or damaged log books, where charges may escalate from Sh2,500 to Sh10,000.

The renewal of a lost or damaged driver's license might increase from Sh500 to Sh1,000.

Additionally, motorists could face a surge in fees for converting foreign licenses, from Sh1,000 to Sh10,000.

Transfer of ownership fees for motor vehicles with an engine capacity not exceeding 1,000cc could rise to Sh10,000 from Sh1,660.

Road service licenses for vehicles carrying 6-8 passengers might double from Sh2,700 to Sh5,400.

Justifying these proposed increases, NTSA board member Paul Posh Abwora stated, "As an institution, our capacity has increased. The number of stations we are manning has also grown, so we need to increase our capacity to deal with the challenges of road traffic, and that's why we need to increase our budget to foot the bills."

Notably, digital taxi operators such as Bolt and Uber might face a 100 per cent hike in licensing fees, with charges potentially surging from Sh100,000 to Sh200,000.

The NTSA suggests the necessity for a tiered fee structure, reflective of the complexity and scope of services rendered.

If implemented, these proposed fee adjustments would also impact the acquisition of standard number plates, with costs rising from Sh3,000 to Sh5,000.

The NTSA underscores that these changes are imperative to bridge the financial gap and sustain the efficacy of road safety programs and ICT system maintenance.