The High Court has directed that no changes be made to the shareholding or directorship of Directline Assurance Company Limited pending the hearing and determination of a petition challenging a probe by the Attorney General into the company’s internal affairs.
In orders issued on November 4, 2025, Justice Lawrence Mugambi directed that the status quo be maintained.
This means the existing shareholding structure and directorship of the company shall remain unchanged until the petition is heard and determined.
The order also restrains the Business Registration Service (BRS) from effecting any alterations to the company’s records in the meantime.
The petition was filed by Sureinvest Company Limited and Triad Networks Limited, identified in court papers as majority shareholders of the insurer.
They claim that the Attorney General acted unlawfully by invoking Section 800 of the Companies Act to initiate an investigation into the company’s affairs, arguing that the provision does not permit such action without a court order.
According to the petition, the Attorney General’s investigation was allegedly prompted by a complaint from minority shareholders, Dr Samuel Kamau Macharia and Royal Credit Limited.
The probe is said to be aimed at establishing the legitimacy of shareholding and directorship changes at Directline since 2005.
The petitioners contend that these issues were already addressed in an arbitration award delivered on May 11, 2022, by arbitrator Phillip Bliss Aliker.
Court documents indicate that the petitioners allege the Attorney General’s inquiry has already been concluded without their participation, despite what they describe as repeated requests to be heard.
They further claim that the BRS has initiated administrative steps to alter the company’s shareholding records, even as the dispute remains before the court.
The matter has become increasingly contentious, with both majority and minority shareholders filing multiple applications and preliminary objections.
Some have sought conservatory orders to safeguard their interests, while others have asked the court to strike out the petition before the main case is heard.
To streamline proceedings, the court directed that all applications and objections be heard together within the main petition and set timelines for filing and exchanging written submissions.
The matter will be mentioned on March 11, 2026, to confirm compliance and to fix a date for judgment.
The court’s orders offer temporary relief to the petitioners, who had sought protection against any structural changes to the company while the case is pending.
The ruling effectively halts actions arising from the Attorney General’s investigation until the court determines the legality of the process.
The case has attracted public attention, as Directline Assurance is one of Kenya’s largest insurers of public service vehicles.
The company has in recent years faced disputes over ownership and control, and industry data from the Insurance Regulatory Authority shows its market share declined from 47.97 per cent in 2024 to 38.40 per cent in 2025.
Analysts warn that further instability within the company could have ripple effects across the insurance and transport sectors, potentially impacting vehicle owners, commuters, and accident victims who depend on its services.
