Tahmeed Bus Express Ltd says none of the occupants in its bus died following an accident involving the PSV and a petroleum tanker.
The bus was en route to Mombasa from Busia.
Reports by a section of the media indicated that two people perished at the scene in the Mundika area of Busia county after the bus collided with the tanker before bursting into flames.
Five others who were badly injured were rushed to the Busia Referral Hospital.
In an update posted on Facebook, Tahmeed explained that the bus had six occupants, with three crew members, all of whom survived the accident with injuries.
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They were rushed to hospital for treatment, the company said.
"Our bus KCV 296R from Busia to Mombasa was involved in an accident at 1320hrs close to Mundika primary, onboard were 6 passengers and 3 crew members all of whom were successfully evacuated and taken to the nearest hospital for treatment," the company said.
In the face of the tragedy, the company restated its commitment to observing road safety rules to the advantage of the passengers travelling in its buses.
Tahmeed announced the journey would go on despite the accident.
"As Tahmeed we are committed to ensuring we adhere to all road safety regulations as such we are cooperating with the authorities as they conduct their investigations to try and unravel the cause of the accident, we wish all families affected quick recovery
For passengers who were to be picked in the next towns measures have been put in place to ensure you get to your destination in good time," further read the company's statement.
In a statement, the Kenya Red Cross said the Busia County government mobilized a rescue mission to extinguish the flames, rescue the passengers, and assess the extent of the tragedy.
"Following a head-on collision involving an oil tanker and a PSV Bus at Mundika junction in Busia County, response teams, including the County Fire Brigade and Red Cross Action team, have been deployed to the scene.
"Ongoing efforts are underway as a fire has erupted as a consequence of the collision," Kenya Red Cross stated.