S.K. Macharia's battle for Directline Assurance heads to court, lawyer speaks

Macharia and his wife initially secured licenses for Royal Media Services and Directline Assurance
After their son reactivated the company, ownership was transferred to individuals who were not the original investors
He accuses individuals of orchestrating a hostile takeover of the insurance company

Renowned media mogul and owner of Royal Media Services, S.K Macharia, has taken legal action in an escalating battle over the ownership of Directline Assurance.

The businessman, through his lawyer Danstan Omari, has accused certain individuals of orchestrating a hostile takeover of the insurance company, a venture he founded alongside his wife, Gathoni Macharia.

The genesis of the dispute

Speaking outside the Milimani Courts after filing a petition, Omari revealed that Macharia was forcefully ousted from Directline Assurance in a calculated move by external parties.

"For the first time S.K. Macharia has gone to court to challenge how his company was fraudenlty taken away from him and the shareholders being him, his wife and other shareholders," Omari said.

Billionaire S. K. Macharia Billionaire S. K. Macharia Pulse Live Kenya

READ: Regulator responds to S.K. Macharia's closure of Directline, gives way forward

According to Omari, the couple had initially secured licenses for two of their businesses: Royal Media Services and Directline Assurance. However, this process was not without challenges.

Omari explained that in the initial stages, they were required to raise Sh100 million in deposit as a prerequisite to obtaining the license.

This was achieved, but shortly before they could fully secure the licenses, new laws came into effect, increasing the required amount to Ksh250 million.

"They managed to raise the necessary funds and successfully acquired the license for the insurance company," Omari stated.

Despite acquiring the license, the Macharias chose to focus on building Royal Media Services, temporarily putting Directline on hold.

It wasn't until their late son grew up that he reactivated the company’s operations under his supervision.

SK Macharia's late son John Macharia SK Macharia's late son John Macharia Pulse Live Kenya

READ: Billionaire S.K. Macharia shuts down company & fires all employees immediately

Hostile takeover and investigations

The dispute took a darker turn after the death of Macharia’s son. According to Omari, the ownership of Directline Insurance was transferred to individuals who were not the original investors. Macharia was subsequently barred from accessing the company’s offices.

"My client was ejected from the company in a hostile manner, losing control over the operations of Directline," Omari explained.

In response, Macharia launched a formal complaint with the Insurance Regulatory Authority (IRA), prompting investigations by multiple agencies, including the Directorate of Criminal Investigations (DCI), National Intelligence Service (NIS), and the Ethics and Anti-Corruption Commission (EACC).