We propose a non-abelian higher-spin theory in two dimensions for an infinite multiplet of massive scalar fields and infinitely many topological higher-spin gauge fields together with their dilaton-like partners. The spectrum includes local degrees of freedom although the field equations take the form of flatness and covariant constancy conditions because fields take values in a suitable extension of the infinite-dimensional higher-spin algebra $hs[lambda]$. The corresponding action functional is of BF-type and generalizes the known topological higher-spin Jackiw-Teitelboim gravity.