Directline Assurance Company Limited has taken legal action to prevent Kenyan media tycoon Samuel Macharia from broadcasting cautionary advertisements that advise the public against engaging with the insurer.
The court move is the latest twist in a prolonged legal and business conflict between the 83-year-old mogul and the Nairobi-based motor vehicle insurance company.
In its court filing, Directline’s management has sought an injunction to halt Macharia’s media campaign, outlining escalating tensions in their longstanding feud.
The development follows an October 2024 court ruling that ordered Macharia to return Ksh.400 million unlawfully withdrawn from Directline’s account. The court deemed the transfer illegal and a deliberate attempt to destabilize the insurer financially.
The court mandated a forensic audit of Directline’s financial records as part of the ruling.
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An interim board, including representatives from AKM Investments Ltd, Janus Ltd, and Royal Media Services Ltd, was appointed to oversee the audit, which must be completed within 90 days.
Macharia, the chairman of Royal Credit Limited, has been a major shareholder and influential figure in Directline for years. The insurer, established in 2005, has cemented its position as a leading player in Kenya’s insurance industry, particularly in motor vehicle insurance.
In the 2022/2023 fiscal year, Directline reported a revenue of Ksh.4.1 billion ($31.6 million), driven by collaborations with agents, brokers, and financial institutions.
The rift between Macharia and Directline dates back to 2019, when he authorized the withdrawal of Ksh.400 million to finance a housing project under his company, Toy and Suna Holdings.
Terry Wanjiku Wijenje, a co-founder and shareholder of Directline, opposed the decision, arguing the withdrawal violated company regulations. Subsequent allegations of irregular board appointments further deepened the conflict, prompting legal interventions.
Directline’s troubles intensified in 2024 after the Insurance Regulatory Authority (IRA) froze its accounts. Macharia accused former directors of embezzling Ksh.7 billion ($54.1 million), a claim that added fuel to the ongoing dispute. In response, Macharia announced plans to shut down the company, lay off staff, and transfer its assets to Royal Credit Limited.
Despite the back-and-forth, Macharia remains a key player in Kenya’s business and one of the wealthiest individuals in the country.
He holds substantial stakes in Directline and is the founder of Royal Media Services, one of East Africa’s largest private media networks.
