The Lower Eastern Times Opening The Third Eye
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In a shocking development, Royal Credit Company has declared the immediate closure of Directline Assurance Company, with all its operations ceasing effective immediately.
Dr. SK Macharia, the Chairman of Royal Credit Limited and owner of Royal Media Services, released a terse statement today confirming the closure and subsequent termination of all Directline employees.
Dr. Macharia asserted that Royal Credit Limited, the parent company, has also dissolved the Board of Directors of Directline Assurance Company. Furthermore, all assets owned by Directline will be absorbed by Royal Credit, as per the announcement.
The closure comes in the wake of the Insurance Regulatory Authority’s (IRA) decision to shut down all bank accounts associated with Directline Assurance Company.
Dr. Macharia pointed fingers at the IRA, accusing them of negligence for failing to act against the former directors of Directline, whom he alleges embezzled over 7 billion shillings from the company’s coffers.
Expressing deep concern over the mismanagement of funds, Dr. Macharia emphasized the need for accountability within the insurance industry. He lamented the suspension of insurance services by Directline Assurance Company, leaving policyholders in a state of uncertainty.
Directline Assurance Company, once a prominent player in the insurance sector, now faces an uncertain future as it grapples with financial mismanagement allegations and regulatory sanctions.
The closure of Directline Assurance Company marks a significant shake-up in Kenya’s insurance landscape, raising questions about corporate governance and regulatory oversight within the industry.
