Nicco Movers Sacco has won temporary relief after the Transport Licensing Appeals Board suspended a decision by the National Transport and Safety Authority (NTSA) to revoke its Public Service Vehicle (PSV) operator licence, paving the way for the Sacco to resume operations as its appeal is heard.
In a ruling delivered on Wednesday, the tribunal halted the implementation of NTSA's June 9, 2026 decision that had grounded the Sacco's fleet and effectively barred it from conducting transport business.
“The implementation, enforcement and/or execution of the respondent’s decision contained in the letter dated 9 June 2026 revoking the appellant’s PSV operator licence is hereby suspended, pending the hearing and determination of this appeal or until further orders,” the board ruled.
The tribunal further allowed Nicco Movers to return to the roads, although under strict conditions designed to strengthen safety standards and regulatory compliance.
“The appellant is hereby permitted to resume operations of its fleet subject to the implementation of a safety compliance plan which shall be filed within seven days,” the ruling stated.
NTSA had opposed the application, arguing that the Sacco posed a significant risk to public safety because of alleged failures in fleet management and breaches of transport regulations. According to the authority, revoking the licence was necessary to safeguard passengers and other road users.
However, the tribunal found that the appeal raised substantial legal questions requiring full consideration. The board cited claims of procedural unfairness, denial of a fair hearing, disproportionate sanctions and the regulator's alleged failure to consider mitigating factors before cancelling the licence.
“While the tribunal does not make definitive findings at this stage, these grounds disclose triable issues. A prima facie case has been established,” the board noted.
The tribunal also agreed that maintaining the suspension of operations could cause extensive damage to the Sacco and its employees.
It accepted arguments that hundreds of drivers and support staff risked losing their livelihoods, while the company faced severe financial losses from grounded vehicles.
“Such harm is difficult to quantify or reverse fully by damages, especially in a regulated sector,” the board observed.
Despite granting the interim orders, the tribunal stressed that passenger safety would remain central to the dispute.
“Road safety is a paramount public interest concern generally under the NTSA Act. Unfettered assumption of operations which could endanger passengers and other road users cannot be countenanced,” the ruling stated.
The case will be mentioned on July 2, 2026, when further directions on the hearing of the appeal are expected to be issued.
The licence revocation stemmed from investigations into the death of 19-year-old Kenya Medical Training College (KMTC) student Eugene Mutuku, an incident that sparked national outrage and renewed scrutiny of safety standards in the public transport sector.
According to witness accounts, Mutuku was involved in an altercation over fare payment while travelling in a matatu linked to Nicco Movers on June 4, 2026. Preliminary reports indicated that he was allegedly assaulted and pushed from the moving vehicle.
The matatu is reported to have continued moving after he was ejected and allegedly ran over him. Mutuku was rushed to Kenyatta National Hospital for treatment but later succumbed to severe multiple injuries and internal bleeding.
Following the incident, NTSA launched an extensive assessment of the Sacco's safety systems and compliance status. The regulator said the review uncovered serious shortcomings that posed a threat to passengers and other road users.
In a public notice issued on June 12, NTSA stated that the Sacco's management had “lost control of the operation of their fleet,” raising concerns about oversight and accountability.
Investigators further concluded that the operator lacked sufficient safety measures and had failed to adequately address critical risks within its operations.
“As part of the ongoing investigation into the unfortunate incident that claimed the life of Eugene Mutuku, a KMTC student, the Authority conducted a thorough assessment of the operator's safety practices and compliance status,” the notice stated.
Based on the findings, NTSA revoked the Sacco's Public Transport Operator (PTO) licence and ordered an immediate cessation of operations.
The directive barred all vehicles operating under the Nicco Movers banner from carrying passengers, while police officers nationwide were instructed to take action against any vehicles found violating the order.
The latest tribunal ruling temporarily overturns that directive, allowing the Sacco back on the roads while the legal battle over the licence revocation continues.
