Nairobi, Kenya – A heated battle for control of Directline Assurance Company Limited has taken a dramatic turn after the High Court ordered the immediate removal of staff and security personnel installed by media tycoon Samuel Kamau (SK) Macharia in his contested takeover attempt.
On Friday, Justice Francis Gikonyo directed the Officer Commanding Station (OCS) Central Police Station to enforce the eviction and restore order at the insurer’s Hazina Towers headquarters. The court affirmed that only its sanctioned interim directors have the authority to manage Directline, warning that defiance would attract penal consequences. “There is absolute need to remove all such strangers from the premises and to secure compliance with existing orders,” Justice Gikonyo ruled.
Macharia, who claims majority shareholding in the motor vehicle insurer, had on September 22 installed new managers, dismissed existing staff, and sought to alter bank signatories and internal financial controls. He also issued memos to employees announcing leadership changes. These moves, however, were made despite an active injunction barring him from interfering with Directline’s operations.
The insurer’s directors accused Macharia of contempt, detailing in court how he and associates forced entry into the premises, accessed restricted areas, and attempted to seize company files. CCTV footage reportedly captured the chaos as staff were verbally dismissed and security guards loyal to Macharia tried to block the board’s access.
In a statement, Directline’s board reassured clients that operations remain stable. “Directline continues to fully comply with all legal processes, and remains committed to corporate governance and service delivery,” the directors said, noting that the firm had paid Sh1.47 billion in claims by mid-September.
The shareholder wrangle has wider implications for the insurance industry. Directline, one of Kenya’s largest motor vehicle insurers, has faced increased scrutiny over governance battles that risk undermining public confidence. Regulators, including the Insurance Regulatory Authority (IRA), are closely monitoring the standoff amid fears it could destabilize the firm’s financial position if not swiftly resolved.
The dispute also extends beyond the boardroom. Separate court cases have previously restrained Macharia from using his media platforms to broadcast cautionary adverts warning the public against engaging with Directline. Judges have consistently emphasized that the company’s affairs should be determined within the legal framework, not through unilateral action or public campaigns.
For now, the ruling strengthens the position of Directline’s current directors as the legal custodians of the company, while putting Macharia on notice that any further defiance could invite sanctions. The outcome of the broader shareholder case is expected to determine the future leadership of the insurer, but until then, the High Court has made clear that governance must be guided strictly by court orders.
With billions of shillings in claims at stake and thousands of motorists depending on its cover, the case has become a test of how Kenya’s judiciary and regulators safeguard corporate governance in critical financial institutions.
