By Rédaction Africa Links 24 with Daily Nation
Published on 2024-01-24 21:00:00
Second-hand car dealers are facing financial challenges due to difficulties in making logbook transfers on the National Transport and Safety Authority (NTSA) portal after the agency moved systems to eCitizen. This has led to strained cash flow for the dealers, as they are unable to transfer logbooks or make registrations, which has stalled the processing of payments for cars bought through asset financing.
According to the dealers, nearly 90 percent of second-hand car buyers make purchases through asset financing, with bank loans providing between 60 percent to 80 percent of the car value. This reliance on financing has made the hitches in the logbook transfer process a significant issue for the dealers.
NTSA migrated its Transport Integrated Management System (Tims) portal to eCitizen in line with a government directive to have payments for all State services made on the same platform. However, since the migration, the system has been down most of the time, making it difficult for dealers to transfer logbooks, which are critical for banks to release funds for car purchases covered by bank loans.
The Secretary General of the Kenya Auto Bazaar Association, Mr. Charles Munyori, expressed concern over the situation, stating that the inability to make logbook transfers and registrations has left them stuck with no information from NTSA on when the issue will be resolved. The logbook transfers are crucial for banks to release funds, underscoring the impact of the hitches on the dealers’ business.
NTSA charges a fee for logbook transfers, with the cost varying depending on the engine capacity of the vehicle. However, NTSA had not responded to inquiries about when the hitches would be resolved to restore normal services on TIMS. The move to eCitizen is part of the government’s efforts to streamline payments for State services and eliminate revenue leakages associated with manual systems.
The challenges in making logbook transfers have also impacted customers who rely on financing from micro-financiers and saccos to purchase second-hand cars. The high cost of living has led to an increased reliance on financing for car purchases, making the hitches in the logbook transfer process a significant concern for both dealers and customers.
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