Nicco Movers Back on the Road: Tribunal Overrules NTSA Licence Cancellation

The Transport Licensing Appeals Tribunal has temporarily lifted the revocation of Nicco Movers Ltd’s operating licence. This allows the public service vehicle operator to resume operations pending the hearing and determination of its appeal.

The National Transport and Safety Authority (NTSA) had suspended the company’s operations on June 9. NTSA acted after the death of 19-year-old KMTC student Eugene Mutuku who was allegedly thrown from a moving matatu on Thika Road.

Mutuku sustained severe injuries and died at Kenyatta National Hospital. The revocation cited multiple fatal accidents, public safety concerns, fleet management failures and repeated regulatory non-compliance.

In a ruling delivered on Thursday tribunal chairperson Dr Adrian Kamotho stayed the enforcement of the NTSA decision. The order requires Nicco Movers to meet safety compliance requirements within seven days.

The tribunal directed that NTSA remains free to reinstate the suspension if the company fails to comply within the stipulated period. The decision came after Nicco Movers sought urgent intervention through lawyer Danstan Omari.

The company argued that the revocation had grounded its fleet. It disrupted transport services and threatened the livelihoods of hundreds of employees, drivers and support staff.

Nicco Movers further told the tribunal that the decision put at risk investments worth more than Sh1 billion. These belong to more than 110 investors associated with the Sacco.

The company maintained that compliant vehicle owners were being punished for the actions of a few operators. It highlighted corrective measures already taken on vehicle inspections, speed governors and driver training.

The tribunal found that the appeal raised several arguable issues. These include allegations of procedural unfairness, denial of a fair hearing and whether the penalty was proportionate to the alleged violations.

It also expressed concerns over whether revoking the entire operator’s licence unfairly affected investors and vehicle owners who had complied with regulatory requirements. Some vehicles appeared willing to meet inspections and directives.

NTSA defended its action before the tribunal. Director-General George Njao insisted that public safety must take precedence over economic considerations.

The authority acted within its statutory mandate after administrative efforts to secure compliance failed. NTSA pointed to two fatal accidents involving vehicles linked to the Sacco.

A compliance audit revealed widespread breaches within the fleet. These included vehicles not transmitting speed governor data and others operating above prescribed speed limits.

NTSA reported that 51 vehicles had been flagged for speeding violations. This placed the operator below the minimum compliance threshold required for licensing.

The tribunal observed that while some vehicles had been implicated in serious traffic offences others showed readiness to comply. It questioned whether less severe enforcement measures could have achieved the regulatory objective.

In granting the interim orders the tribunal held that denying relief at this stage could render the appeal nugatory. This would happen if the company ultimately succeeds on the main case.

The ruling allows Nicco Movers to continue operating under the temporary stay. The full appeal will now determine the long-term status of the licence.