Hello and welcome to the Money Weekly Newsletter, where we cover the latest proposal to introduce mandatory emissions tests for all vehicles.

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Senate Bill Proposes New Mandatory Emissions Tests for Vehicles

All vehicles in Kenya could soon be required to undergo a separate annual emissions test before renewing their motor insurance under a Bill tabled in the Senate.

The proposed tests in the Environmental Management and Co-ordination (Amendment) Bill of 2026 by Mandera Senator Ali Roba are separate from the NTSA's mandatory vehicle inspection, which took effect on July 1, 2026.

As outlined in the Bill, the proposed test will focus on emissions and will be conducted at privately accredited centres linked digitally to the National Environment Management Authority (NEMA).

“By regulating motor vehicle and stationary source emissions, this Bill aims to help significantly reduce the country’s carbon footprint, contributing to global efforts to mitigate climate change,” read the Bill in part.

“The enactment of this Bill is a critical step towards improving air quality, protecting public health, and promoting sustainable development.”

Test results will be transmitted automatically to the authority, which will issue emissions certificates to vehicles that pass.

Motorists will be required to present the certificate when renewing their insurance and carry or display it while using the vehicle, similar to the current insurance certificate.

Driving a vehicle that has not undergone an emissions test will be an offence, and failure to comply could attract a fine of up to Ksh500,000.

Repeat offenders risk a Ksh1 million fine, up to two years in prison, and possible suspension of the vehicle's licence by NTSA.

Although the Bill does not specify the cost of the emissions test, it gives the Environment Cabinet Secretary powers to set the fees through regulations. 

Accredited testing centres will retain 60% of the fees collected, with the remaining 40% remitted to NEMA.

The proposal comes just weeks after NTSA rolled out mandatory annual vehicle inspections, which currently cost Ksh2,000 for PSV and commercial vehicles.

Private vehicles older than four years are also expected to be subjected to the inspections once NTSA announces the rollout date.

Here is a quick recap of the top news stories for the week:

• Kenya Railways is planning a 15-kilometre extension of the Standard Gauge Railway (SGR) into Nairobi CBD, eliminating the need for passengers to connect from Syokimau using the metre-gauge railway, matatus or taxis. The extension will follow the existing railway corridor through Embakasi, Imara Daima, Donholm and Makadara, with passenger stations at Imara Daima, Makadara and Nairobi Central Station. The project is expected to form part of the Ksh28 billion Nairobi Railway City project.

• KRA plans to replace the current Excel-based income tax return filing system with a web-based platform from 2027 to simplify tax compliance. The new system will allow taxpayers to file returns directly through a web browser, eliminating the need to download Excel files. The Finance Act, 2026 also introduced staggered filing deadlines, with individuals required to file by April 30 and companies by June 30. Nil returns will be due in January. KRA also plans to expand tax return filing through its AI-powered WhatsApp assistant, Shuru, to support more complex returns.

• Dangote Industries is set to begin construction of its planned Ksh2.2 trillion oil refinery in Lamu later this year. Billionaire Aliko Dangote said Lamu was selected for commercial and technical reasons. The refinery is expected to cost up to $17 billion (about Ksh2.2 trillion) and take around five years to complete. Once operational, it will replicate Dangote's 700,000-barrel-per-day refinery in Nigeria, making it one of Africa's largest refining facilities. The project was initially planned for Tanzania before the investment was shifted to Kenya.

• The Ministry of Transport is preparing new regulations that could increase fares for Uber, Bolt and other ride-hailing services by introducing a minimum payment per trip for drivers. Transport network companies will be required to guarantee drivers a minimum fare before commissions, taxes and other deductions. Industry estimates suggest the minimum fare could rise from about Ksh220 to between Ksh400 and Ksh500. The proposed regulations will also introduce different minimum rates based on vehicle engine capacity.

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All Vehicles to Undergo Another Emissions Test in Addition to NTSA Inspection

All vehicles in Kenya could soon be required to undergo an annual emissions test before renewing insurance, in addition to the mandatory NTSA inspection.

The proposed Environmental Management and Co-ordination (Amendment) Bill of 2026, before the Senate, proposes that motorists take their vehicles to privately accredited centres linked to NEMA, with results transmitted automatically and certificates issued to compliant vehicles.

These certificates will be required for insurance renewal and must also be carried or displayed on the vehicle.

The proposal comes shortly after NTSA introduced a Ksh2,000 annual inspection, currently targeting PSV and commercial vehicles, with private vehicles expected to follow.

Watch to learn more.

@money254hq

All Vehicles to Undergo Another Emissions Test in Addition to NTSA Inspection All vehicles in Kenya could soon be required to undergo an a... See more

That’s a wrap for this week’s Money Weekly!

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