S.K. Macharia, owner of the insurance company Royal Credit Limited, issued a terse statement announcing that all employees of Directline had been let go.
He also announced that the Board of Directors would be dissolved immediately and that all assets of Directline would be acquired by Royal Credit Limited.
Macharia attributed the liquidation of Directline Assurance Company to the Insurance Regulatory Authority's (IRA) decision to freeze the company's bank accounts.
Macharia also accused IRA of mismanaging Ksh7 billion in funds and blamed the organization for not taking action to remove its former directors.
Did you read this?
We found the clip that Citizen TV aired in which Royal Credit (RC) Chair Dr. SK Macharia allegedly announced the closure of DirectLine Assurance (DL):
— Mwango Capital (@MwangoCapital) June 10, 2024
—All DL employees dismissed
—Board of DL sent home
—All DL properties taken over by RC
—DL will no longer be issuing insurance pic.twitter.com/Zrt0p6maS4
After reaching the controversial conclusion, the company announced that all insurance services will be immediately discontinued.
Since the company is the leading provider of auto insurance in the country, the most recent development has taken the transportation industry by surprise.
In November 2005, Directline entered the Kenyan market as a car insurance provider.
The company's income rose to Ksh4.1 billion in the 2022–2023 fiscal year, up from Ksh3.6 billion the previous year.
Directline attributed this increase in profits to its relationships with 17 banks, 3,200 agents, 83 brokers, and other market intermediaries.
