Businessman SK Macharia./FILE
There was drama at the Nairobi offices of Directline Assurance Company Limited after businessman SK Macharia appeared at the premises and declared he had taken over operations.
Staff at the Hazina Towers office, where the insurer is based, said Macharia was accompanied by a group of people and announced changes, including the dismissal of some employees.
They claimed the group forcibly accessed parts of the office. The staff reported the matter to the Central Police Station and also notified the Insurance Regulatory Authority (IRA).
CCTV footage from the incident showed Macharia and his team at the reception, appearing to give instructions. Attempts to reach him for comment were unsuccessful.
Directline’s Principal Officer and Chief Executive Officer, Sammy Kanyi, confirmed he had filed a report with authorities.
“He announced he had dismissed me and led a group into the offices despite a court order. Let the authorities take the necessary action,” Kanyi said.
Police later visited the offices and confirmed investigations were underway. Court records show that last year, an injunction was issued barring Macharia and others from interfering with the company’s operations.
The orders specifically restrained them from terminating or hiring employees, issuing directives to contractors, accessing Directline’s offices, or carrying out any financial transactions on behalf of the company without shareholder or board approval.
In a separate case, another court order stopped Macharia from airing cautionary advertisements regarding Directline Assurance.
The insurer had argued that the adverts, broadcast on stations owned by Macharia’s Royal Media Services, were damaging to its business reputation and financial standing.
Justice Francis Gikonyo granted temporary orders restraining the publication and circulation of the advertisements, noting that Directline is a legally distinct entity and its financial stability should not be undermined pending a full hearing of the matter.
In response, Macharia’s lawyer, Kamau Kuria, argued that his client was the rightful owner of the company and accused its current directors of taking control improperly.
Meanwhile, the Insurance Regulatory Authority defended Directline, affirming that it is duly registered and legally required to honor all claims.
IRA Chief Executive Officer Godfrey Kiptum reassured the public: “All insurance policies issued by Directline Assurance remain in full force. Any contrary claims are of no legal effect.”
Directline remains the leading insurer for commercial Public Service Vehicles (PSVs), including matatus and buses.
While its market share dropped from 64.95% in early 2023 to 59.79% in 2024, the company continues to dominate the PSV insurance market.
