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After a week of drama involving Kenyan tycoon Samuel Kamau “SK” Macharia, the High Court has ordered the removal of security guards he stationed at Directline Assurance’s head office in Nairobi. The ruling follows accusations that Macharia ignored earlier court orders and staged a takeover of the insurer’s operations.
Justice Francis Gikonyo said the guards at Hazina Towers must leave because they were blocking interim directors appointed by the court from performing their duties. The ruling is the latest twist in a battle that has simmered for years and erupted again earlier this month.
Court says orders violated, risks policyholders
According to court filings, Macharia stormed Directline’s offices on Sept. 22 with a group that forced its way inside. He then announced sweeping leadership changes, naming Stella Kinoti as finance head, Wilson Wambugu Maina as principal officer, and James Mari as head of IT. Security footage shows him issuing instructions in the company’s reception area.
Lawyers for Directline told the court that the move directly violated standing orders issued on Oct. 4 2024 and could disrupt the insurer’s day-to-day operations, potentially putting policyholders at risk. They asked police to enforce the court’s directives and remove Macharia’s appointees.
Directline’s chief executive, Sammy Kanyi, also urged the court to hold Macharia in contempt. He argued that the businessman ignored binding rulings and unlawfully reshaped the board of directors, further destabilizing the company.
At 83, SK Macharia still leads
The insurer was founded in 1998 by Macharia’s late son, John Gichia Macharia, and was formally licensed in 2005 to provide public service vehicle coverage. After his son’s death in 2018, SK Macharia took over as chairman, fueling a dispute with shareholders and executives.
Now 83, Macharia is best known as chairman of Royal Media Services and Royal Credit Ltd., and he remains a shareholder in Directline. The insurer is one of Kenya’s most recognized motor underwriters, posting Ksh4.1 billion ($31.7 million) in income during the 2022–23 financial year through agents, brokers and banks.
High court restricts Kanyi’s Directline role
Earlier this year, the High Court barred him from interfering with the company’s management. Judges issued injunctions blocking him or his associates from signing cheques, issuing financial instructions, or directing banks and contractors without board approval.
In a separate ruling, the court also restrained him from using Royal Media Services to warn the public against working with Directline, after the insurer said such broadcasts harmed its reputation. Justice Gikonyo stressed in his latest orders that Directline must be treated as a separate legal entity, saying its financial health needs safeguarding. He has now marked Kanyi’s contempt application as urgent, scheduling a hearing for Dec. 13, 2025.
