Public service vehicle operator Nicco Movers has been allowed to resume operations temporarily, pending the hearing of a case it has filed at the High Court.
Justice Janet Mulwa directed the reinstatement of the operator’s licences a day after declining to lift the suspension imposed by the Transport Licensing Board on August 31.
The court allowed the company’s buses back on the road after it presented evidence that it had complied with the directives issued by the board.
“Meanwhile, prayers 2 and 3 of the motion are granted in terms as stated in the said prayers,” the court ruled.
The National Transport and Safety Authority (NTSA) first suspended Nicco Movers’ operations on June 9, citing accidents, public safety concerns, fleet management failures and regulatory non-compliance.
Nicco Movers told the court that the tribunal had dismissed its case on the grounds that there was no evidence it had attempted to comply with the directives.
However, the company argued that it had already filed an inspection schedule and supporting receipts showing inspections, re-inspections and successful compliance checks, which it said the court needed to consider during the review.
The operator said the suspension of its entire business and its fleet of 159 vehicles, including those scheduled for inspection, was prejudicial.
“The continuing suspension exposes the business and its employees to serious and immediate commercial harm,” the company submitted.
It added that the suspension threatened its employment obligations and put established route services at risk.
The company’s chief executive, Phenius Gitau Mugo, said he had engaged NTSA on the 10 concerns raised by the authority and discussed the way forward.
He argued that the tribunal had erred by imposing conditions for the revocation and suspension of the licence without considering that the company could not meet some of them.
Mr Mugo said the tribunal had treated the blanket suspension as an all-or-nothing decision without considering less restrictive interim measures.
He cited Section 34(3) of the National Transport and Safety Authority Act, arguing that it allowed restrictions to be imposed on individual vehicles. He said the tribunal had also acknowledged the need for proportionality and the availability of alternative regulatory measures.
The company further argued that NTSA could reinstate the suspension if it failed to comply with the requirements within the stipulated period.
Through its lawyer, Danstan Omari, Nicco Movers said the tribunal’s decision put at risk investments worth more than Sh1 billion belonging to more than 110 investors associated with the Sacco.
NTSA had, however, defended its decision, maintaining that public safety must take precedence over economic considerations.
The authority told the tribunal that the operator had failed to report mandatory safety incidents, could not account for drivers involved in fatal crashes and had repeatedly breached operational requirements.
NTSA cited two fatal accidents involving vehicles linked to the Sacco. In one incident, a Kenyatta University student was knocked dead near Kahawa Sukari on January 11. In another, a passenger died after being thrown from a moving vehicle.
The authority also said a compliance audit had revealed widespread breaches across the fleet, including vehicles that were not transmitting speed governor data and others operating above prescribed speed limits.
It said 51 vehicles had been flagged for speeding violations, leaving the operator below the minimum compliance threshold required for licensing.
In its defence, Nicco Movers said it had taken corrective measures, including monitoring vehicle inspection certificates to ensure timely renewals, strengthening oversight of speed governors through approved service providers and improving driver training on road safety and regulatory compliance in collaboration with NTSA officers.
Mr Omari argued that revoking the licence amounted to a “death sentence” for investors. He urged the tribunal to allow the Sacco to continue operating under strict compliance conditions pending the determination of its appeal.
“The applicant recognises the deaths and public safety concerns addressed in the tribunal judgment. It seeks no protection for a defective vehicle or an unqualified crew member, and proposes proportionate protection for passengers alongside preservation of a viable appeal,” Omari said.
He said the central question before the court was whether the suspension should remain in force despite the company’s claims that it had complied with the directives and that its fleet no longer posed a safety concern.
