New car buyers have been warned of an emerging scheme involving the KD plates, typically provided by car dealers as a quick and convenient solution for unregistered cars.
The use of KD Plates is issued as temporary registration plates for vehicles that have been newly purchased but have yet to be assigned their official permanent licence plates by the National Transport and Safety Authority (NTSA). The KD stands for "Kenyan Driver", indicating that these plates are meant for vehicles which are in transit.
While these plates allow car owners to drive their cars legally, most new users are unaware of the limitations and regulations surrounding them, providing an avenue for schemers to thrive.
One of the emerging schemes involves the use of brokers to acquire the temporary plates. Since a majority of new car buyers are relatively unaware of the goings-on in the car industry, brokers exploit this gap in knowledge to take advantage of the system. In some cases, buyers have reported receiving the KD plates at a daily rental fee even though the registration plates are not insured.
Failure of these brokers to provide valid insurance coverage leaves buyers vulnerable in the event of a calamity, since their car would be legally ineligible for compensation.
Insurance Hoax
Many car buyers simply assume that the KD Plates are all they need to be legally on the road. However, the lack of understanding about insurance requirements for these plates makes it easy for brokers to deceive buyers into accepting faulty insurance plans.
One car user, who purchased a car in August 2024, spoke to Kenyans.co.ke, admitting that she used her vehicle (Registration KDR...) for nearly six months before realising she was on the road without proper insurance.
According to the buyer, when she purchased her vehicle, she also paid a lump sum, which was meant to go towards a comprehensive insurance cover.
However, in the process of acquiring a KD Plate while waiting for the car's actual registration plate, the broker deliberately insured the KD Plate since the vehicle did not actually have a licence plate.
"Once my number plates came in, I was given an insurance sticker by my dealer. I had no idea they gave me a sticker which was supposed to run for only a month. The comprehensive cover I paid for actually went to the KD number plates, which I only used for two weeks," she narrated.
It was not until she was stopped by a traffic cop that the buyer realised her mistake, and once she followed up with the car dealership, they restored her rightful insurance, which was on the verge of expiry anyway.
This is just one of the many ways insurance schemes by brokers are conducted. In a separate hoax, these KD Plate brokers give clients plates without proper authorisation from NTSA, allowing them to offer similar plates to multiple buyers. As a result, clients pay a daily rental fee for a green KD plate, which may not necessarily be properly registered.
The brokers then claim delays in processing the car's actual plates, compelling the client to keep paying the daily rental charge for the KD Plates.
Buyers have thus been advised to be extra cautious when dealing with brokers issuing KD Plates by always asking for their insurance details and ascertaining that the cover is comprehensive.
New car owners are also encouraged to confirm that the insurance is from a reputable company which is renowned for taking claims seriously in the event of road incidents. Unbeknownst to many, a buyer can easily take out insurance themselves when there are reservations about how dealers are moving.
