IRA revokes closure of Directline Assurance that had been announced by SK Macharia

The insurance regulator has issued a stern warning to shareholders of Directline Insurance Company Limited, advising them to steer clear of meddling in the company’s operations.

The Insurance Regulatory Authority has made it clear that shareholders could face legal consequences if they do not adhere to the directive.

In a letter to the shareholders, the Commissioner of Insurance and IRA CEO, Godfrey Kiptum, emphasized that the appointment of a chairman for the company was not in line with the Insurance Act.

According to Kiptum, the alleged appointments of the chairman, directors, and CEO were a violation of the Insurance Act and Corporate Governance Guidelines, which require approval from the commissioner before assuming such roles.

This drama unfolded when businessman Samuel Kamau Macharia attempted to take control of the insurance company previously owned by his late son, John Macharia.

Macharia boldly declared himself as the chairman and director of the company, overseeing public service vehicles (PSV), private, and commercial motor vehicles.

In a letter to the staff, Macharia claimed to represent majority shareholders, including Royal Media Services, Royal Credit Limited, S.K Macharia, P.G Macharia, and the late Dan Karobia’s estate. He even went as far as suspending the managing director, Terry Wijenje, and appointing Isaac Ngaru in an acting capacity.

However, Kiptum made it clear that only directors approved by the authority have the right to control an insurance company. Any attempts to seize control outside the legal framework are deemed invalid.

Since its inception in 2005, Directline Insurance Company Limited has established itself as the leading PSV underwriter in the country, boasting a market share of 60% by the end of 2015.