Directline Insurance, a company owned by Media Mogul S.K Macharia, has been closed. The company was closed yesterday 10/6/2024 through a letter from the Board Chairman,S.K Macharia.
S.K Macharia directed the company management to close the business, he also fired all staff members. Assets owned by the Insurance company were transferred to Royal Credit Limited. The information came as a surprise to employees—they had no clue it was to be closed, not even Senior Managers.
Insurance Regulatory Authority had frozen bank accounts of Directline Insurance, making it impossible for the company to operate. The closure was as a result of alleged fraud which was perpetrated by former directors.
Directline Insurance employs over 1,600 Kenyans directly and indirectly. The death of the insurer translates to loss of jobs.
Directline insurance had a market share of 60.79% and it was controlling motor insurance sector. The policy holders will continue to get services until their policies expire. In the meantime, they should be looking for alternative insurer.
From next financial year, Directline won’t exist—this means that Kenyans will have to look for alternative motor insurance that provide better or services equivalent to Directline insurance. Below is the list of insurance companies with best Motor Insurance Policy in Kenya:
- Madison Group Limited
- Britam Insurance
- APA Insurance
- Jubilee Insurance
- Kenya Alliance
- First Assurance
- AIG Kenya Insurance
- CIC Insurance
Directline Insurance was formed in 1998.It’s major business is to insure motor vehicles. It offers comprehensive and third party insurance policies.
One reason it was so successful is because it settles claims on time. They also had good customer support. Diretline Insurance is also cheaper than majority of local insurance companies, making it the most favourite for local matatus and private vehicles.
John Macharia was the one running Directline Insurance before S.K Macharia took over the business.John died in 2020 through a road accident.
Directline has been surrounded by controversies. In 2021 court ordered S.K Macharia to handover the business to his grandson, he refused. This is one of the reasons the billionaire closed the business.
