The Cabinet has approved the rollout of second-generation smart driving licences under a public–private partnership (PPP) in a move aimed at modernising the country’s transport system and enhancing road safety.

The decision was made during a Cabinet meeting chaired by President William Ruto on Monday, December 15, 2025.

The new licences will integrate instant fines, mobile licence wallets, and a driver merit and demerit points system. According to the Cabinet, these features will modernise enforcement, strengthen licensing management, and improve compliance with road safety rules.

“Through innovative financing, Cabinet approved the rollout of second-generation smart driving licences under a public–private partnership, integrating smart licences with an instant fines system, mobile licence wallet and driver merit and demerit points to enhance road safety and modernise licensing,” Cabinet stated.

The second-generation licences are chip-based cards that store drivers’ personal information, traffic offence records, fines, and digital signatures. They also provide access to electronic wallets and mobile apps, enabling drivers to pay fines and manage records digitally. The licences are designed to improve enforcement management, enhance security, and simplify renewals.

The rollout follows a decision by the National Transport and Safety Authority (NTSA) to enforce mandatory retests for drivers flagged by the Intelligent Road Safety Management System (IRSMS). The IRSMS is a digital platform that monitors vehicles, including PSVs and commercial fleets, to enforce traffic rules.

The system tracks speed, braking patterns, route compliance, and driver behaviour, sending alerts for violations such as reckless overtaking and speeding. NTSA Director General Angela Wanjira said the retests are vital to prevent accidents, particularly during the festive season.

The programme comes after years of delays in issuing smart licences. Since the project began in 2017, only 2.1 million of the targeted five million licences have been issued. Contracts previously signed with the National Bank of Kenya faced operational challenges, including large stocks of unprinted and undelivered cards. Access Bank Plc has since taken over, delivering more than four million blank cards.

NTSA officials noted that motorists have increasingly chosen yearly electronic licences over the three-year smart cards, slowing uptake. The transition to a public–private partnership is expected to improve efficiency, speed up delivery, and reduce operational challenges.

Government officials said the rollout will also harness private sector efficiency to ensure motorists have reliable access to licences while supporting modernisation of the licensing system.

Ksh5T funds drive

In addition to the smart driving licences, the Cabinet approved the establishment of the National Infrastructure Fund (NIF) and the Sovereign Wealth Fund (SWF), forming part of Kenya’s KSh5 trillion development plan.

The NIF will mobilise domestic resources, monetise public assets, and attract private investment, focusing on infrastructure projects that generate long-term value. The SWF will manage revenues from minerals and petroleum, dividends from public investments, and a portion of privatisation proceeds, with a focus on inter-generational savings and strategic investments.

Together, the funds aim to support Kenya’s broader transformation agenda, including large-scale irrigation projects, road and railway upgrades, energy generation, and industrialisation.

The Cabinet also approved related policies, including the National Energy Policy, National Petroleum Policy, the National Integrated Security Command and Control System, the Livestock Value Chain Support Project, and the National Care Policy.