KP makes registration mandatory for street vendors
PESHAWAR: The Khyber Pakhtunkhwa Assembly has passed the Street Vendors Protection Bill 2026, making registration and vending certificates mandatory for people operating carts and roadside stalls across the province.
The new law is expected to provide legal protection to more than 140,000 street vendors for the first time.
Under the legislation, individuals aged 14 years and above will be eligible to register as street vendors. All vendors will be required to complete registration and obtain a valid vending certificate.
Registered vendors will receive a modern digital vending certificate containing a QR code. The certificate is intended to formally recognise vendors and provide them with legal protection while carrying out their businesses.
The law provides protection against unjustified eviction and harassment. Government employees found harassing street vendors could face strict departmental action.
The legislation also introduces penalties for members of the public or shopkeepers who harass vendors. A person found guilty could face a fine of up to Rs20,000 or imprisonment for up to one month.
Vendors will also have the right to appeal if their vending certificates are suspended or cancelled.
The law prohibits vendors from selling or transferring their vending certificates to another person. Anyone violating this provision could face a fine of up to Rs3,000.
The legislation also highlights the economic contribution of street vendors to the province. According to the bill, vendors collectively generate more than Rs380 billion in economic activity every year.
The informal vending sector is estimated to contribute around Rs130 billion annually to the national economy.
The government expects that better regulation and management of the sector could generate an additional Rs2.5 billion to Rs5 billion in annual revenue.
The new legislation aims to bring the informal vending sector under a formal regulatory framework while providing vendors with legal recognition and protection.
