The issuance and management of smart driving licences will be transferred from the National Transport and Safety Authority (NTSA) to a private investor following Cabinet approval of a new public-private partnership (PPP) framework.

Under the arrangement, the rollout of Second-Generation Smart Driving Licences will be undertaken through a PPP, integrating chip-based licences with an instant fines system, a mobile driving licence wallet, and a driver merit and demerit points framework aimed at improving road safety and modernising driver licensing.

The decision follows persistent implementation challenges at NTSA, which has struggled to scale issuance of chip-based licences since the initiative was launched in 2017. As of June 2025, NTSA had issued about 2.1 million smart driving licences against a target of 5 million.

“Through innovative financing, Cabinet approved the rollout of Second-Generation Smart Driving Licences under a public-private partnership, integrating smart licences with an instant fines system, mobile licence wallet and driver merit and demerit points to enhance road safety and modernise licensing,” Cabinet said after a meeting held earlier today.

The new system is expected to digitise enforcement by enabling real-time verification of licences, automated fines issuance, and continuous tracking of driver behaviour through merit and demerit scoring. The mobile licence wallet will allow drivers to access and present their licences digitally.

The shift to private-sector participation is intended to accelerate deployment, reduce operational bottlenecks, and limit the burden on public finances, while aligning Kenya’s driver licensing regime with global best practices in road safety and digital governance.