Motor Vehicle Dealers Act (MVDA)

Motor Vehicle Dealers
Act (MVDA)
Section 1: General Licensing & Definitions
1. A "dealer" under the Traffic Act is defined as any person who deals by way of
business in:
A. Motor vehicles only
B. Motor vehicles or trailers
C. Motor vehicles, trailers, and all vehicle spare parts
D. Vehicles and other agricultural machinery
Correct Answer: B
A "dealer" is defined as any person who deals by way of business in motor
vehicles or trailers.
2. The primary licence required for a person to operate as a motor vehicle dealer
in Kenya is the:
A. Trade Licence
B. Business Permit
C. Dealer's General Licence
D. Import Declaration Form
Correct Answer: C
A dealer's general licence is issued under section 23 of the Traffic Act and is
required for operation.
3. The Dealer's General Licence is issued by the:
A. Kenya Revenue Authority (KRA)
B. National Transport and Safety Authority (NTSA)

,C. Registrar of Motor Vehicles
D. Ministry of Trade and Industry
Correct Answer: C
The Registrar of Motor Vehicles is responsible for issuing the Dealer's General
Licence.
4. A Dealer's General Licence is typically valid until:
A. One year from the date of issue
B. The 31st of December following its issue
C. The end of the financial quarter
D. The date specified in the licence schedule
Correct Answer: B
The licence is valid until the 31st of December following its date of issue, requiring
annual renewal.
5. Under the Traffic Act, a Dealer's General Licence is:
A. Transferable with a small fee
B. Non-transferable without the authority of the Registrar
C. Freely transferable between family members
D. Valid for a period of five years
Correct Answer: B
The licence shall not be transferred or assigned to any other person without the
authority of the Registrar.
6. The fee for a new Dealer's General Licence application is:
A. Kshs 6,300
B. Kshs 18,500
C. Kshs 2,500
D. Kshs 10,000
Correct Answer: B
The payment for a new application is Kshs 18,500.

,7. The fee for the renewal of a Dealer's General Licence is:
A. Kshs 18,500
B. Kshs 6,300
C. Kshs 4,200
D. Kshs 9,600
Correct Answer: B
Renewals of the Dealer's General Licence require payment of Kshs 6,300.
8. One of the requirements for a new Dealer's General Licence application is:
A. A valid Certificate of Good Conduct
B. A copy of the Trade Licence
C. A bank statement for the last six months
D. A recommendation letter from the local chief
Correct Answer: B
A copy of a Trade Licence is required as part of the application documents.
9. One of the requirements for the renewal of a Dealer's General Licence is the
submission of a:
A. Bank guarantee
B. Movement Register for perusal
C. Stock inventory from the previous year
D. New police abstract
Correct Answer: B
The renewal process requires the perusal of a Movement Register.
10. An appeal against the Registrar's decision to cancel a Dealer's General
Licence can be made to a:
A. High Court Judge
B. Principal Magistrate
C. Magistrate of the first class
D. NTSA Director General

, Correct Answer: C
A person aggrieved by the cancellation may appeal to a magistrate of the first
class within one month of the notice.


Section 2: Second-Hand Motor Vehicle Dealership
11. Under the Second-hand Motor Vehicles Purchase Tax Act, a person carrying
on the business of buying and selling second-hand motor vehicles must hold a
licence issued by the:
A. County Government
B. Kenya Revenue Authority
C. Registrar of Motor Vehicles
D. Anti-Counterfeit Agency
Correct Answer: C
Section 3A of the Second-hand Motor Vehicles Purchase Tax Act requires a licence
from the Registrar of Motor Vehicles.
12. A licence to deal in second-hand motor vehicles is exempted for a person
who holds a:
A. Single Business Permit
B. Dealer's General Licence under the Traffic Act
C. Import Declaration Form
D. Certificate of Registration of a company
Correct Answer: B
No fee is payable for the second-hand dealer licence by a person who holds a
dealer's general licence issued under the Traffic Act.
13. A licence to deal in second-hand motor vehicles is valid for a period of:
A. Six months
B. One year
C. Two years
D. Five years