After months of speculation and alarming audit reports regarding the backlog at the National Transport and Safety Authority (NTSA), the government has officially pulled the trigger. In a Cabinet meeting held on Monday, the government approved the rollout of Second-Generation Smart Driving Licenses.
While the headlines were dominated by the new Sovereign Wealth Fund and the National Infrastructure Fund, the driving license update is arguably the most immediate change for the average Kenyan tech user and motorist.
The big news? The NTSA is effectively handing over the keys to a private consortium in a deal valued at a staggering KES 45 billion.
Pesa Print and National Bank to lead the charge
According to tender documents seen by Techish, the project has been awarded under a Direct Procurement method to a “Strategic Partnership” involving Pesa Print and National Bank.
Here are the hard numbers you need to know:
- Contract value: KES 45 billion (~$350 million).
- Duration: 21 years.
- Model: Public-Private Partnership (PPP).
- Scope: Supply, delivery, and installation of second-generation smart card-based driving licenses.
This confirms earlier reports that the government was looking to strip the NTSA of its printing duties due to efficiency failures.
Why this shift is happening: The NTSA performance gap
If you have been waiting months for your Smart DL, you know why this is happening. The NTSA has been struggling to keep up with demand.
The Auditor General previously raised a red flag over a backlog of 572,000 unprinted cards. The previous arrangement, which began in 2017 with a target of 5 million licenses, had only managed to issue roughly 2.1 million by mid-2025.
The situation was dire:
- Wasted taxpayer money: KES 176 million worth of blank cards were sitting in storage, deteriorating.
- Slow output: In the year leading up to June 2024, NTSA printed fewer than 160,000 cards.
- Hardware failures: Reports indicated frequent printer breakdowns and supply chain issues.
The government’s solution is to privatize the headache. By moving to a PPP model, the administration hopes to unlock private capital to fix the supply chain, similar to how the passport backlog was addressed.
What’s new in second-generation smart driving licenses?
Beyond the politics of procurement, what does this actually mean for your pocket and your phone? The Cabinet brief details three specific tech integrations for the new licenses:
1. Instant fines system: This has been in the works for years, but the new system promises full integration. If you commit a traffic offense, the fine is levied against your digital record immediately. No more negotiating by the roadside? We’ll see.
2. Mobile licence wallet: This is the most “Techish” feature. It implies a move toward a fully digital ID system where your phone acts as your license. It’s unclear if this will replace the physical card entirely or just act as a companion, but it aligns with the global shift toward digital wallets.
3. Merit & demerit points: Gamification of driving is coming. Good drivers get “merit” points; bad drivers get “demerit” points. Accumulate enough bad points, and you could lose your license automatically. This data will likely be stored on the chip and the cloud, accessible by insurance companies to determine your premiums.
The jump in cost is eye-watering. The original deal in 2017 was valued at KES 2.1 billion. This new 21-year strategic partnership is valued at KES 45 billion.
While a 21-year term explains some of the cost inflation, the shift to “Direct Procurement” rather than a competitive open tender is sure to raise eyebrows in the tech and governance sectors.
However, for the Kenyan motorist tired of carrying a “waiting slip” for three years, the efficiency can’t come soon enough. If this deal brings an end to the “printer is broken” excuse and finally gives us a functional digital wallet for our licenses, it might just be worth the price tag.
What do you think? Are you ready for instant digital fines? Let us know in the comments.
