The audit, released on Sunday, June 30, highlights a staggering Ksh1.2 billion discrepancy in funds and a severe delay in project implementation.
Initiated in 2017 with ambitious plans to roll out five million second-generation smart card-based driving licences, the project has fallen drastically behind schedule.
According to the Auditor General Nancy Gathungu, NTSA’s management failed to enforce the use of these smart driving licences effectively, resulting in substantial financial losses.
Out of the allocated Ksh2.03 billion, only 4,042,050 smart cards were delivered by the supplier, with a significant portion—2,562,874 cards—remaining unused in NTSA’s storage, valued at approximately Ksh788.85 million.
“The failure to utilise these smart cards represents a serious lapse in financial management,” stated Gathungu, emphasising the project’s inability to achieve value for the Ksh1.2 billion already expended.
In addition to the smart card debacle, the audit scrutinised NTSA’s implementation of the Transport Integrated Management System (TIMS), designed to centralise vehicle registrations, inspections, and driver licensing.
Despite an investment of Ksh186.48 million in the system, significant deficiencies were noted.
The TIMS, managed through the E-Citizen platform since March 2023, lacks comprehensive reporting capabilities, hindering the accurate analysis of revenue streams across NTSA’s regional offices.
Key weaknesses identified include the system’s inability to generate detailed transaction reports and the absence of data migration from previous versions, limiting NTSA’s operational efficiency.
Moreover, crucial revenue data such as license fees and permit revenues, totaling Ksh1.04 billion, could not be verified against e-Citizen reports due to system limitations.
“The current access limitations and data inconsistencies undermine NTSA’s ability to validate financial statements,” stated the audit report.
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