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Kenyan media mogul Samuel Kamau "Sk" Macharia on Monday entered the offices of Directline Assurance Company Ltd., declared he had taken control, and told staff they were dismissed, triggering a tense standoff that employees and executives say violated court orders.
Forced entry, cameras roll
Witnesses at Hazina Towers said Macharia arrived with a group that forced its way into the office, breaking doors and announcing staff changes. Surveillance footage shows Macharia in the reception area directing people, according to staff who requested anonymity.
“There is a valid court order stopping his actions,” one employee said. Staff reported the incident to the Central Police Station and the Insurance Regulatory Authority. Police later visited the office, telling employees investigations were under way.
Directline’s chief executive, Sammy Kanyi, said he had filed a formal complaint. “He announced he had fired me. He also led a group to break doors, despite a court order prohibiting such moves. Let the authorities take the necessary action,” Kanyi said.
Court orders and frozen accounts
The confrontation comes amid a long-running legal dispute over control of the insurer. Earlier this year, a court barred Macharia from interfering in Directline’s management, staff, or finances. Injunctions prohibited him and his associates from signing checks, moving funds, or issuing instructions to banks and contractors without board approval.
A separate ruling stopped Macharia and his outlets from running cautionary adverts about Directline. The company argued that advertisements aired by Royal Media Services — a Macharia-owned broadcaster — were defamatory and hurt Directline’s finances. Justice Francis Gikonyo granted a temporary restraining order, noting that Directline is a separate legal entity whose operations must be protected.
Past clashes and financial claims
Macharia, 83, chairman of Royal Credit Ltd., has been a shareholder in Directline for years. Founded in 2005, Directline is a well-known name in Kenya’s motor insurance market. In its 2022-23 fiscal year Directline reported Ksh4.1 billion ($31.7 million) in income supported by a network of agents, brokers, and bank partners.
The dispute traces back to 2019, when Macharia ordered the withdrawal of Ksh400 million ($3.1 million) from Directline to fund a housing project under Toy and Suna Holdings. In June 2024, Macharia said Directline would close after its accounts were frozen by the Insurance Regulatory Authority. He accused former directors of misappropriating Ksh7 billion ($54.2 million). Last October, a court ordered him to return the Ksh400 million ($3.1 million) he had withdrawn.
What happens next
With police and regulators involved, the matter is expected to return to court. Employees remain at their desks, the company maintains its legal protections, and the standoff highlights the tense relationship between major shareholders and corporate managers in Kenya’s financial sector.
