There was drama at the Nairobi offices of Directline Assurance Company Limited after businessman and media mogul SK Macharia attempted to seize control of the insurer’s operations.
Eyewitnesses at Hazina Towers, where Directline is headquartered, reported that Macharia arrived with a group of people and announced sweeping changes, including the dismissal of some employees. Staff claim the group forcibly accessed restricted areas, prompting them to alert the Central Police Station and the Insurance Regulatory Authority (IRA).
CCTV footage captured Macharia at the reception issuing instructions. Directline’s Chief Executive Officer, Sammy Kanyi, confirmed he had reported the incident to authorities.
“He announced he had dismissed me and entered the offices despite a valid court order. Let the authorities take the necessary action,” Kanyi stated.
Police later visited the premises and confirmed investigations are ongoing. Court records reveal that in 2023, an injunction barred Macharia from interfering with the company’s affairs. The orders specifically prohibited him from terminating or hiring employees, accessing offices, or conducting financial transactions without board approval.
In a separate ruling, another court also stopped Macharia from airing cautionary advertisements about Directline on his Royal Media Services stations. The court noted that such adverts could damage the insurer’s reputation and financial stability.
Macharia’s lawyer, Kamau Kuria, however, argued that his client is the rightful owner of the company, accusing the current directors of taking control improperly.
Meanwhile, the IRA defended Directline, assuring the public that all insurance policies issued by the company remain valid. IRA CEO Godfrey Kiptum stressed that “any contrary claims are of no legal effect.”
Directline remains Kenya’s leading insurer for public service vehicles, though its market share slipped from 64.95% in early 2023 to 59.79% in 2024. Despite the dispute, it continues to dominate the PSV insurance sector.
