Directline Assurance has announced the immediate termination of its insurance business issuance.
Directline, owned by billionaire businessman SK Macharia’s Royal Credit Limited, decided to cease its insurance operations, resolving to stop issuing insurance policies and conducting insurance business.
As part of the termination, the Association of Kenya Insurance Companies (AKI) has been directed not to issue any insurance certificates or stickers in the name of Directline Assurance Company Limited as of September 10, 2024.
The company imperatively stated that any future transactions should be conducted through its original shareholders and has declared any CR12 indicating other shareholders as false and obtained through unauthorised means.
“The company is no longer under the regulation of the Insurance Regulatory Authority as per the Insurance Act Cap 487. Subsequently, all banks dealing with Directline Assurance Company Limited are notified that the CR12 currently in circulation is fraudulent and does not reflect the true shareholding or directorship of the company.” the notice reads.
“They are prohibited from making any transactions not authorized by the real shareholders, who are Royal Credit Limited, S.K. Macharia, and Mrs. Macharia.”
Directline accused IRA saying it permitted and continued to permit the issuance of the fraudulent CR12 despite being fully aware of the fraud dating back to 2005.
“They are liable for the employees they employed in the name of the company and also liable for the monies and assets worth over Ksh7 billion (out of which Ksh2.3 billion was paid to Actis, a UK-based company), which they took from the company contrary to Section 71 of the Insurance Act,” read the notice.
Directline claims the persons or entities listed in the fraudulent CR12 are neither shareholders nor directors of the company.
