Nicco Movers Sacco has secured a temporary reprieve after the Transport Licensing Appeals Board suspended a decision by the National Transport and Safety Authority (NTSA) revoking its Public Service Vehicle (PSV) operator licence over the death of a Kenya Medical Training College (KMTC) student.
In a ruling delivered by a three-member tribunal, the board found that the Sacco had raised substantial legal questions regarding the manner in which NTSA reached its decision and ordered the suspension of the licence revocation pending the hearing and determination of the appeal.
The appeal was lodged by the Sacco through lawyer Danstan Omari, who challenged NTSA’s action on grounds that the operator had been denied a fair hearing before the regulator imposed the sanction.
The tribunal, chaired by Hillary Kangogo Songoyo alongside members Benson Gichohi Ngure and Jackline Millicent Omiti, noted that the appeal raised arguable issues including alleged procedural unfairness, errors contained in the revocation letter, and concerns over whether the penalty imposed was proportionate.
“The applicant has raised arguable grounds on the main appeal, including manifest errors on the face of the revocation letter, allegations of procedural unfairness, lack of fair hearing and disproportionality of the revocation,” the board observed.
Consequently, the tribunal ordered that NTSA’s decision contained in a letter dated June 9, 2026, be suspended until the appeal is heard and determined or until further directions are issued.
The board, however, directed Nicco Movers to implement and file a comprehensive safety compliance plan within seven days as a condition for resuming operations.
It further cautioned that NTSA would be at liberty to seek urgent intervention from the tribunal should the Sacco breach any of the imposed conditions.
Court documents filed by Nicco Movers’ Chief Executive Officer, Phenius Gitau, indicate that NTSA initially issued a show-cause notice on June 5 requiring the company to appear before the authority on June 12 and explain concerns raised by the regulator.
Gitau stated that the company immediately began preparing the requested reports, compliance documents and other materials in readiness for the hearing.
According to the Sacco, a subsequent letter allegedly requiring its appearance on June 10 was never served upon the company.
Despite this, Nicco Movers maintains that it attended the June 12 hearing, presented the required documentation and responded to questions raised by the authority.
The operator further informed NTSA that investigations into the death of KMTC student Eugene Mutuku were still ongoing and that criminal proceedings had already been instituted against individuals connected to the incident.
However, the Sacco argues that it later received a licence revocation letter dated June 9, three days before the hearing took place.
It contends that the date of the letter suggests the decision had already been made before it was accorded an opportunity to present its case.
The dispute arises from the death of 19-year-old Mutuku, who allegedly fell from a Nicco Movers matatu following a dispute over fare payment.
Reports indicate that the vehicle failed to stop after the incident and that the student was subsequently run over, sustaining fatal injuries.
The incident, captured on video and widely circulated online, sparked public outrage and prompted investigations by transport authorities.
Following the investigations, NTSA revoked the Sacco’s operating licence, arguing that the management had lost effective control of its fleet and failed to maintain adequate safety standards.
The regulator also cited findings that some vehicles within the fleet posed safety risks to passengers and other road users.
The matter has also resulted in criminal proceedings against two operations managers linked to the Sacco, who have been charged with offences including aiding the escape of the crew allegedly involved in the incident, concealing evidence and being accessories after the fact.
In urging the tribunal to intervene, Omari argued that the revocation would severely disrupt the Sacco’s operations, affect hundreds of employees and expose investors to significant financial losses.
He told the board that more than 110 investors had collectively committed over Sh1 billion to the transport business and should not be punished for alleged wrongdoing by a few individuals.
Following the ruling, the advocate indicated that he would seek instructions from his client on the way forward regarding the substantive appeal.
The case will be mentioned before the tribunal on July 2, 2026, for further directions as the challenge to NTSA’s decision proceeds.
