The National Assembly's Budget and Appropriations Committee has made proposals on the management of funds collected from completed motor vehicle transfers.
In its 2024/2025 budget report, the committee recommended that the National Transport and Safety Authority (NTSA) retains the money collected from motorists.
The Ndindi Nyoro-led committee observed that the money would help NTSA run its programmes.
Notably, the proposal was made following the reduction of funds allocated to the authority from the exchequer.
Traditionally, NTSA has been collecting funds from motorists and remitting the same back to the national government.
"NTSA suffered a budget cut of 30 per cent and a total withdrawal of exchequer funding. The Committee on Transport and Infrastructure observed that this would adversely affect the Authority on the attainment of its performance targets.
"This is especially given that the Authority is allowed to retain only 9 revenue streams against the 42 revenue streams that they charge," read the report in part.
Consequently, in implementing the changes, the MPs recommended Treasury Cabinet Secretary Njuguna Ndung'u approves the retention.
"By September 30, 2024, the Cabinet Secretary for National Treasury to enhance the Appropriation in Aid (AIA) for the National Transport and Safety Authority by granting approval of retention of revenue from the Transfer of Motor Vehicles given the withdrawal of exchequer funding to the Authority," Nyoro and his committee proposed.
Motor vehicle transfers are facilitated by NTSA at different charges depending on the vehicle's engine capacity. The prices usually range from Ksh2,200 to Ksh7,000.
On the other hand, the committee also proposed an increased allocation of Ksh200 million to the authority for road safety initiatives.
This follows the rising concerns of accidents across the country. As of April 2024, over 1,500 Kenyans had lost their lives in road accidents.
