MPs Slam “Shocking” NTSA Smart Licence Deal as KSh900 Billion PPP Sparks Outrage
By News Desk
Members of the National Assembly’s Public Debt and Privatization Committee have demanded an immediate review of a controversial 21-year Public-Private Partnership (PPP) agreement between the National Transport and Safety Authority (NTSA) and a private consortium led by PesaPrint, terming the deal “grossly unfair” and heavily skewed against Kenyan taxpayers.
The Committee, chaired by Hon. Abdi Shurie, raised alarm over the revenue-sharing model that would see private partners pocket an estimated 77.4 per cent of total revenues, leaving the Government with less than a quarter throughout the contract period.
The agreement covers the rollout of second-generation smart driving licences and the introduction of an automated “instant fine” system, supported by the installation of 1,000 surveillance cameras nationwide.
Appearing before the Committee, NTSA Director General Nashon Kondiwa defended the PPP arrangement, citing persistent underfunding from the National Treasury. He revealed that only 2.7 million licences had been issued over nearly nine years under the previous government-funded model—far below the five million target.
“We were clearly disadvantaged in negotiating because we are not even negotiating our own money; we are negotiating services while revenue goes elsewhere,” Kondiwa told legislators.
He further noted that 60 per cent of NTSA’s revenue is remitted to the Exchequer, significantly limiting the Authority’s ability to reinvest in road safety systems and infrastructure.
However, lawmakers strongly rejected the justification, pointing to past performance under a fully public model. Between 2017 and 2024, the Government invested KSh1.2 billion and generated KSh6.7 billion—figures MPs say prove the sustainability and profitability of a state-led approach.
Hon. Aden Daudi sharply criticized the financial structure of the deal, warning that it disproportionately benefits private investors. “This is a PPP that is so unfair to the public and so fair to the private partner. Over 21 years, projected revenues stand at KSh900 billion against costs of KSh300 billion—that’s a staggering 300 per cent profit,” he stated.
The consortium behind the deal includes KCB Bank, following its acquisition of the National Bank of Kenya, raising further concerns among MPs about the concentration of financial interests in the agreement.
Legislators also questioned why the Government opted for a PPP model, arguing that the technology required for smart licence production is similar to that used in national ID issuance—successfully managed under a traditional public system.
While acknowledging the urgent need to address road safety challenges—currently costing the economy an estimated KSh460 billion annually—lawmakers insisted that the deal’s structure is unjustifiable.
“Who in their right mind signs away public revenue like this? Seventy-seven per cent to private entities for 21 years is unacceptable,” Hon. Daudi added.
The Committee has resolved to obtain the full contract and summon the PPP Unit at the National Treasury to explain the apparent bypassing of competitive procurement procedures.
In response, Kondiwa pledged to review the agreement’s framework and engage stakeholders afresh, admitting that the deal’s structure requires urgent reconsideration.
The matter now sets the stage for a potential high-stakes showdown between Parliament and key government agencies over transparency, accountability, and the protection of public resources.
