The shortage of number plates has affected the automotive industry, negatively impacting sales and cash flow for dealers.
Traders who spoke to this publication say the supply crisis has been going on for three weeks, while the National Transport and Safety Authority (NTSA) remains reticent to address the issues.
Dealers are now stuck with the units, as it is difficult to sell a car without plates, or make bank transfers that require the plates to be completed.
The shortage has hit cash flow for an industry that just six months ago was unable to transfer vehicle records or register new cars after the National Highway Traffic Safety Administration moved its system to the eCitizen platform.
In addition to the impact on cash flows, traders or buyers are also likely to face higher additional storage charges as vehicles continue to remain at container freight stations at Mombasa Port.
“There has been a crisis in getting number plates for the past three weeks. We have been badly affected because you cannot do bank transfers for cars without number plates,” said Anthony Aleri of Carmax East Africa.
These hurdles have also left new car buyers stranded as they have already paid the Sh3,000 required to get number plates for their vehicles.
The crisis comes amid a surge in new car registrations, with 54,204 registered between January and March this year, up 15.6 percent from 46,880 in the same period last year.
“It’s bad, we usually get the number plates within a week maximum after registration. But right now, cars that were registered in the first week of August are still at the port,” added Cindy Ndida, marketing manager at SPT Japan’s Kenya office.
By the time of this report’s publication, the National Safety Administration had not responded to questions about the issue and the reasons for the shortage.
The shortage has also led most people to resort to KD plates, which can only be used from 6 a.m. to 6 p.m. KD plates are temporary plates for vehicles waiting for license plates or that do not have insurance.
Earlier this year, auto dealerships faced difficulty transferring vehicle records and processing new registrations after a hiccup occurred after the National Highway Traffic Safety Administration moved its system to the eCitizen portal.
The Transportation Safety Administration rolled out its Integrated Transportation Management System in December of last year, but the increase in system outages has impacted cash flow for auto dealers, as the majority of used cars are purchased through asset financing, with banks paying up to 80 percent of the cost of the unit. License plate shortages have been a recurring problem over the years.