Kenya’s motor vehicle industry is facing a severe disruption due to a nationwide shortage of number plates, delaying vehicle registrations and creating financial burdens for importers and dealers.
The shortage has led to a growing backlog of unregistered vehicles at the Port of Mombasa and various Container Freight Stations (CFS), where dealers are incurring daily storage charges.
The National Transport and Safety Authority (NTSA) has attributed the shortage to a surge in vehicle imports that has outpaced the current capacity for number plate production.
The manufacturing of number plates is centralized at Kamiti Maximum Security Prison, and any operational bottlenecks there have a direct impact on availability nationwide.
Dealers are now grappling with cash flow challenges as they are unable to sell unregistered vehicles.
Compounding the issue are storage fees averaging Sh 3,000 per vehicle per day at freight stations.
The government also mandates that imported second-hand vehicles must be fitted with number plates before leaving the port—a rule aimed at curbing tax evasion and illegal vehicle dumping—which has worsened the delays.
Acknowledging the crisis, the NTSA has committed to working with relevant agencies to resolve the delays.
It cited increased demand as the main driver of the shortage and assured stakeholders that steps are being taken to expedite production and distribution.
To address the recurring challenges, the NTSA plans to roll out next-generation, high-tech number plates to combat duplication and ensure consistent supply.
However, delays in the procurement process have slowed their implementation.
In the interim, industry stakeholders are calling for urgent interventions to ease the backlog and mitigate financial losses.
The ongoing crisis has highlighted the urgent need for systemic reforms in production and supply chain logistics to prevent future disruptions in Kenya’s automotive sector.
