The Lower Eastern Times Opening The Third Eye
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The court has urged parties involved in the long-running ownership dispute over Directline Assurance Company, a leading insurer for Public Service Vehicles, to consolidate and streamline their multiple pending applications.
The aim is to allow the case to focus on the main issues of directorship and shareholding.
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During a mention on Tuesday of a contempt of court application against Royal Credit Limited chairperson Dr. S.K. Macharia, Justice Francis Gikonyo noted that the growing number of applications was unnecessarily delaying a case that should have progressed further.
He called on the parties to simplify the proceedings so the court could concentrate on the core dispute.
Dr. Macharia appeared at Milimani Law Courts at 9 a.m. for the mention of the contempt application filed against him by the plaintiff. He raised a preliminary objection, claiming the court lacked jurisdiction to hear the matter.
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Despite this, Justice Gikonyo instructed the parties to find a practical way to narrow down the numerous applications and focus on the main issues concerning shareholding and directorship.
“Find a pragmatic approach to ensure fairness and speed up the hearing,” Justice Gikonyo said.
The judge also observed that the dispute had become highly adversarial, with both majority and minority shareholders filing multiple applications and preliminary objections, slowing down what should have been a quicker resolution.
“If this matter were before me earlier, this Directline issue would have been resolved long ago,” he added.
Defense lawyer Julius Orenge noted that many of the applications related to shareholding and directorship were being filed by the plaintiff.
“From the court records, it is the plaintiff who keeps filing applications and objections,” Orenge said.
Both parties agreed to follow the court’s guidance and consult on narrowing down the issues to be determined.
“Parties, through their counsel, will provide written consent to ensure full participation,” Orenge added.
The case has drawn public interest because Directline Assurance is one of Kenya’s largest public service vehicle insurers. Tuesday’s hearing specifically dealt with the contempt application against Dr. Macharia.
Defense lawyer Kipkemoi Sang said, “My client has sworn an affidavit showing cause as directed by the court, fully aware that procedures were not properly followed from the start.”
The court is set to issue its ruling on the defendants’ preliminary applications on February 12, 2026.
