Friday, January 26, 2024 - Second-hand car
dealers incur losses worth millions after failing to access services on the
National Transport and Safety Authority (NTSA) portal following its recent
migration to the eCitizen portal.
Charles
Munyori, the Secretary General of Kenya Auto Bazaar, revealed to the press that
car dealers cannot transfer car ownership or make registrations via the portal
owing to a system hitch.
He mentioned
that when payments take a long time to be processed, it negatively impacts the
business because it holds up the money from banks for cars purchased through
asset financing.
Asset
financing in this case is a method of acquiring assets such as a vehicle
without having to pay upfront.
This
involves obtaining funds from a financial institution and the purchased asset
serves as collateral for the loan and the dealer repays the loan over time
while being able to use the assets for the intended operations.
He added
that banks provide funds between 60-80 per cent of the car value, hence a delay
in processing payments makes the car dealers lose out on sales - something that
he noted has been occurring since last month when NTSA migrated its services.
"We
have been stuck since they migrated the system last month. We cannot make
logbook transfers and registrations and NTSA is not saying anything about
it," he stated.
He called on
the Agency to offer a way forward on the pertinent issue to avoid
incurring further losses.
Motorists
have also complained about not accessing the services on the NTSA portal
following the migration.
On January
2, 2024, NTSA informed all motorists that the services would be accessed on the
eCitizen platform in line with the government's move to consolidate revenue
collection and enhance accountability.
The Kenyan DAILY POST
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