The High Court has stopped businessman Samuel Kamau (SK) Macharia from airing cautionary ads that warned the public against dealing with Directline Assurance.
The insurer had sought the court order, claiming that the ads, broadcast by Macharia’s Royal Media Services, were defamatory and harming its financial position.
Justice Francis Gikonyo issued a temporary restraining order, highlighting that Directline is a distinct legal entity and its financial stability must be protected.
The judge stated, “Accordingly, the 1st defendant (SK Macharia), his agents, employees or servants or any other person is restrained from publishing, printing, distributing, airing or otherwise circulating the advertisements set out in … the affidavit by Sammy Kanyi.”
Kanyi is Directline’s Acting Principal Officer, who had outlined the false claims made in the campaign.
The ads falsely claimed that Directline’s insurance covers were invalid and that Royal Credit Limited could not guarantee claims. Directline sought to stop the campaign until the case could be fully heard.
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Macharia’s lawyer, Kamau Kuria, opposed the request, accusing Directline’s directors of hijacking his client’s company. Meanwhile, the Insurance Regulatory Authority (IRA) defended Directline, affirming that it is legally registered and bound to honor all claims.
IRA CEO Godfrey Kiptum assured the public that “All insurance policies issued by Directline Assurance remain in full force… Any purported status to the contrary is void of legal effect.” Encouraged by the IRA’s support, Directline is now challenging Macharia in court.
Directline is the leading insurer for commercial PSVs, covering matatus and buses. Despite a slight drop in market share—from 64.95% in early 2023 to 59.79% in 2024—Directline remains the dominant player in the PSV insurance market.
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