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Directline Assurance Company’s ongoing shareholding and directorship row took centre stage in court on Thursday, as Justice Francis Gikonyo called for the matter to be resolved without further delay.
S. K. Macharia, chairperson of Royal Credit Limited and founder of Directline, appeared in court over contempt proceedings and detailed the challenges he says he has faced amid the dispute.
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He claimed the company’s shareholding structure and directorship had been interfered with through alleged fraudulent changes, including alterations to its CR12 records.
Macharia told the court that the core issue of who legally owns and controls Directline should be clarified by the relevant authorities. He urged both the Insurance Regulatory Authority (IRA) and the Office of the Attorney General to step in and address the dispute.
He argued that the court should require the regulator and the Attorney General—whom he described as the custodian of company records such as the CR12—to clarify the legitimate shareholders of Directline.
Responding to the contempt allegations, Macharia said he could not produce documents or information that were not in his possession.
Justice Gikonyo observed that the central question in the case revolves around determining the rightful shareholders and directors of the insurer. He noted that insurance companies fall under the oversight of the IRA, just as banks are regulated by the Central Bank.
The judge urged the parties to prioritise resolving the contested ownership question, stressing that it must be conclusively addressed in court.
The case is set to be mentioned again on April 13, 2026, for further directions.
