The Communications Authority of Kenya (CA) has issued a directive requiring all financial institutions, vehicle dealers, and both public and private organisations to strictly use licensed service providers for vehicle tracking and fleet management services.

In a detailed statement, the Authority said this move is aimed at boosting safety, protecting consumers, and addressing the growing risks posed by unlicensed operators and poor-quality equipment. The directive is backed by the Kenya Information and Communications Act, 1998, which prohibits the operation of any communication service or system without a valid licence issued by the Authority.

According to the CA, only Application Service Providers (ASPs) licensed for fleet management and asset tracking should be engaged. The regulator has instructed all entities to confirm that the providers they work with hold a valid Annual Compliance Certificate issued by the Authority.

“All financial institutions, motor vehicle dealers, and both public and private entities must: only engage licensed Application Service Providers (ASPs) whose license covers Fleet Management and Asset Tracking Services; verify the Annual Compliance Certificate of any tracking service provider before engagement; and assess all current and planned engagements with tracking service providers to ensure they comply with regulatory requirements,” the statement reads.

The Authority made it clear that any tracking services found without the necessary licensing would be considered to be owned or operated internally. As such, affected organisations must apply for direct licensing from the CA to avoid facing regulatory penalties.

Failure to comply with these rules, the Authority warned, will lead to enforcement action, including possible prosecution, without any further warning.

Sections 24, 67, and 75 of the Kenya Information and Communications Act outline the legal framework for licensing and the penalties for non-compliance. These include fines and imprisonment for offenders found operating unlicensed communication systems or services.

“Any violation constitutes an offence and attracts penalties, including fines and imprisonment,” the Authority stated.

The CA urged organisations to verify the compliance status of their service providers by checking the official licensee register available on its website or by contacting the Authority directly for assistance.

David Mugonyi, the Director General and CEO of the Authority, signed the statement, reinforcing the regulator’s stance on strict adherence to licensing laws in the ICT sector.