The High Court has issued an order stopping businessman Samuel Kamau (SK) Macharia from airing cautionary advertisements warning the public against engaging with Directline Assurance.
The ads, broadcast by Macharia’s Royal Media Services, were challenged by Directline, which claimed they were defamatory and damaging to its financial stability.
Justice Francis Gikonyo issued a temporary restraining order, emphasizing that Directline is a distinct legal entity whose financial integrity must be safeguarded.
“The 1st defendant (SK Macharia), his agents, employees, or any other persons are restrained from publishing, printing, distributing, airing, or otherwise circulating the advertisements outlined in the affidavit by Sammy Kanyi.” the judge directed.
Kanyi, Directline’s Acting Principal Officer, detailed in court how the ads falsely alleged that the insurer’s policies were invalid and that Royal Credit Limited could not guarantee claims. Directline argued that the campaign should be stopped pending a full hearing of the case.
However, Macharia’s lawyer, Kamau Kuria, opposed the order, accusing Directline’s directors of taking control of his client’s company. Meanwhile, the Insurance Regulatory Authority (IRA) defended Directline, confirming it is legally registered and obligated to honor all claims.
“All insurance policies issued by Directline Assurance remain in full force. Any claims to the contrary are legally baseless,” said IRA CEO Godfrey Kiptum.
Directline, a leading insurer for commercial PSVs, including matatus and buses, continues to dominate the market despite a slight decline in its market share from 64.95% in early 2023 to 59.79% in 2024.
Encouraged by IRA’s backing, Directline is pursuing legal action against Macharia to address the alleged misinformation.
