High Court halts NTSA directive for dealers to register cars in their possession
By Maureen Kinyanjui |
The controversial notice by NTSA instructed motor vehicle dealers to ensure that any unregistered vehicles in their possession are registered.
The High Court has temporarily blocked a directive issued by the National Transport and Safety Authority (NTSA), which required car dealers to register all unregistered vehicles in their possession.
Justice Gregory Mutai, in a ruling on Wednesday, suspended the implementation of the notice and ordered NTSA to refrain from interfering with the businesses of members of the Car Importers Association of Kenya (CIAK).
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The court issued the orders pending the hearing of a petition filed by CIAK, which challenges the legality of the NTSA notice. The hearing of the case has been scheduled for January 16, 2025.
The controversial notice, which was posted on NTSA's website on December 7, instructed motor vehicle dealers to ensure that any unregistered vehicles in their possession are registered.
It further warned that failure to comply with the directive would result in the seizure of the vehicles and potential prosecution of the dealers.
CIAK, in its petition, has argued that the notice is unfair and unconstitutional.
The association is seeking a court declaration to have the NTSA's directive nullified, and that the agency be prevented from interfering with the operations of car dealers, particularly regarding unregistered vehicles in showrooms.
Through its lawyer Gikandi Ngibuini, CIAK explained that its members have consistently raised concerns with authorities about the challenges of registering vehicles at the points of clearance.
The association argues that registering vehicles before they enter showrooms creates a negative perception among potential buyers, who may view the cars as "old", even if they are brand new.
"The commercial reason for the petitioner's request is based on the fact that registration of vehicles at points of clearance creates a prejudice in potential buyers that such vehicles are already deemed as old," the petition says.
CIAK further contends that the notice is unfair to its members, who are often forced to sell vehicles with outdated registration numbers at prices lower than their actual value.
In contrast, importers of new vehicles are reportedly allowed to bring in their cars without immediate registration, a practice which CIAK claims gives them an unfair advantage.
The association also accused NTSA of failing to respond to a letter it sent raising concerns about the notice. CIAK argues that if implemented, the directive would lead to the unlawful impounding of vehicles and legal action against dealers.
According to CIAK, NTSA's directive would violate the socio-economic rights of its members, and the agency's actions could amount to abuse of power.
The petition further points out that other agencies, such as the Kenya Revenue Authority, Kenya Bureau of Standards, police, and port health officials, have already cleared the vehicles after the appropriate taxes and duties have been paid.
NTSA is expected to file its submissions in court once served with the relevant case documents.
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