Independent motor dealers in Mombasa say tighter enforcement of Kenya Dealer (KD) plate rules has stalled vehicle clearance, triggered arrests, and pushed up costs — and they're demanding the National Transport and Safety Authority rethink the policy.
Mombasa's used-car trade is in turmoil. Dealers who rely on Kenya Dealer (KD) number plates to move imported vehicles from the port to showrooms say a stricter NTSA enforcement regime introduced earlier this year has thrown their operations into disarray, with some traders already counting significant losses.
While the dealers say they back NTSA's broader goal of tightening accountability around dealer plates, they argue the way the rules are now being applied has created a logistical bottleneck that's hitting small and medium-sized dealerships the hardest.
What Changed With KD Plate Rules in 2026
According to Mathew Kilu, Secretary-General of the Independent Motor Vehicle Dealers Association, the trouble traces back to new measures NTSA rolled out on April 11, 2026. Under the revised system, dealers seeking movement permits must now submit import entry details, dealer licence information, and importer particulars together.
On paper, this sounds like a reasonable accountability check. In practice, dealers say it's locking out a huge slice of the industry: independent traders who import vehicles on behalf of individual clients.
Kilu explained the core issue: many imported cars are registered in the buyer's name before they even leave the Container Freight Station (CFS). The NTSA platform, however, is built to recognize companies, not individuals — meaning private importers can't generate the permits needed to get their own vehicles moved.
"The problem is that vehicles are registered before they leave the CFS facilities. Individual importers cannot access the NTSA platform because the system only recognises companies," Kilu said, adding that dealers who step in to help these clients now find themselves stuck in red tape.
He also flagged a related issue: tying customs entry numbers to a specific named importer makes it almost impossible for licensed dealers to process permits for clients who aren't dealers themselves.
Dealers Arrested Over Plates They Legally Paid For
The policy shift hasn't just caused paperwork headaches — it's led to arrests.
Isaac Omollo, one of the affected dealers, says he was detained in Mtito Andei while transporting a vehicle bearing a KD plate, despite operating within what he understood to be standard dealership practice.
"The authorities treated us like criminals, yet we had followed the procedures that have been in place for years. We need clarity because dealers are now operating in fear," Omollo said.
Other traders, like Nicholas Wambua, argue the new framework unfairly favors large, company-registered dealerships over individual or indigenous traders who hold the same licences.
"There should not be discrimination against individual dealers. We are licensed traders just like the larger companies, and we contribute significantly to the economy," Wambua said, warning that the rules risk concentrating Kenya's vehicle import business in the hands of a few big players.
Paying for Plates They Can't Use
Perhaps the most striking complaint from dealers is financial: many say they paid for KD plate allocations that were later rendered unusable when NTSA revoked related licences in April, even as the old plate numbers remained active in the system — exposing some traders to arrest for using numbers they'd legitimately purchased.
Kilu put the cost of a single KD plate at Sh37,000, and says the disconnect between payment, licensing, and enforcement has left dealers footing losses they can't recover.
"It doesn't make sense that we pay for KD plates, but we cannot use them. We are losing money every day because vehicles remain stuck in storage yards while customers continue waiting," he said.
The Ripple Effect: Storage Costs, Depreciation, and Pricier Cars
Beyond the immediate compliance headache, dealers warn the standoff is creating knock-on costs across the supply chain:
Vehicles stuck at the port or CFS facilities continue to rack up storage charges the longer they sit unprocessed. Delayed registration is also complicating financing arrangements with banks, since lenders often need clear vehicle documentation before releasing funds. And the longer a car sits idle, the more it depreciates — squeezing dealer margins and, in many cases, forcing traders to discount vehicles just to move stock.
Industry players caution that if the dispute drags on, Kenyan car buyers could ultimately absorb these costs through slower deliveries and higher sticker prices on imported vehicles.
Dealers Say They're Not Against Regulation — Just This Rollout
Despite the frustration, the dealers' association is careful to frame this as a dispute over implementation, not a rejection of oversight altogether.
"We acknowledge there have been cases where KD plates were abused, and those responsible should be punished," Kilu said, signaling the group's willingness to work with NTSA on a fix.
Their key asks include a simpler, faster permit-generation process; formal recognition of independent (non-company) dealers within NTSA's regulatory framework; and clear transitional guidelines for vehicles that are imported and registered under a customer's name rather than the dealer's.
For now, though, the impasse continues — and Mombasa's independent car dealers say every day without resolution means more vehicles parked, more fees piling up, and more uncertainty for an industry that supports thousands of jobs across Kenya's import and resale economy.
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