Directline Assurance, which commands the largest share of the Kenyan PSV insurance market, has abruptly ceased operations in a shocking development that has left the industry stunned.
All staff have been terminated, according to Citizen News.
In a statement aired on Monday night, Royal Credit Limited Chairman SK Macharia said the company had stopped offering services and terminated its staff contracts.
He added that all assets owned by Directline will be taken over by Royal Credit.
Macharia attributed this move to the closure of all Directline Assurance bank accounts by the Insurance Regulatory Authority (IRA).
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He also blamed the IRA for failing to take action against previous directors of Directline, whom he alleges caused the embezzlement of more than Sh7 billion belonging to the company.
As of June 30, 2023, Directline held Sh1.66 billion in gross premiums from commercial PSV covers, giving it a 60.79 per cent market share in this class of business, according to IRA data.
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