Tribunal Temporarily Reinstates Nicco Movers Licence Pending Appeal

By Effie Akinyi

The Transport Licensing Appeals Tribunal has temporarily reinstated the operating licence of Nicco Movers Limited, allowing the public service vehicle (PSV) operator to resume operations as it challenges the National Transport and Safety Authority’s (NTSA) decision to revoke its licence.

In its ruling, the tribunal suspended the enforcement of NTSA’s decision pending the hearing and determination of the appeal. The judges observed that the case raises significant legal questions, including whether the company was accorded a fair hearing and whether revoking the operator’s entire licence was a proportionate response to the alleged regulatory violations.

Nicco Movers moved to the tribunal after NTSA revoked its operating licence over alleged safety lapses, regulatory non-compliance and fleet management failures. The regulator’s decision followed investigations into the death of a Kenya Medical Training College (KMTC) student who was allegedly thrown from one of the company’s vehicles, an incident that sparked public outrage and heightened scrutiny of the company’s safety standards.

During the proceedings, lawyers representing Nicco Movers argued that the revocation had disrupted public transport services, threatened the livelihoods of hundreds of employees and vehicle owners, and jeopardized investments worth billions of shillings. They contended that many compliant vehicle owners affiliated with the company had been unfairly penalized for the alleged actions of a few individuals.

NTSA defended its decision before the tribunal, maintaining that public safety must take precedence over economic considerations. NTSA Director General Eng. Nashon Kondiwa Njao told the tribunal that the authority acted within its statutory mandate after repeated efforts to secure compliance with road safety regulations failed.

“We have a responsibility under the law to ensure public and road safety. Revocation was only undertaken after efforts to resolve the issues administratively proved unsuccessful,” Njao submitted.

According to NTSA, Nicco Movers failed to report mandatory safety incidents, could not account for drivers involved in fatal crashes, and repeatedly breached operational requirements. The authority further stated that 51 vehicles within the company’s fleet had been flagged for speeding violations, placing the operator below the minimum compliance threshold required for licensing.

During the hearing, the tribunal, chaired by Dr. Adrian Kamotho, questioned whether revoking the operator’s entire licence unfairly penalised innocent investors and vehicle owners who had complied with regulatory requirements. The tribunal also indicated that it would examine whether NTSA had afforded the company a fair administrative process before taking the drastic step of revoking its licence.

In granting the temporary orders, the tribunal emphasized that the reinstatement of the licence does not exempt Nicco Movers from complying with all applicable road safety and transport regulations while the appeal is pending.

The judges further directed that the appeal be fast-tracked, citing the matter’s significance to both public safety and the public transport sector.

The case is expected to return before the tribunal for further directions ahead of the substantive hearing, where both Nicco Movers and NTSA will present their full arguments before a final determination is made on the legality of the regulator’s decision.