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Royal Credit Limited chairperson and Directline founder SK Macharia returned to court on Thursday as a protracted shareholding and directorship dispute at the motor vehicle insurer took centre stage.
Appearing in contempt proceedings, Macharia described what he termed a frustrating struggle over the control of the company he founded. He told the court that Directline shareholding records and directorship details had been altered, leading to confusion over who legally controls the firm.
At the heart of the case is a contested CR12 document, the official company registry record that confirms directors and shareholders. Macharia alleged that the company records had been tampered with through fraudulent transfers.
Justice Francis Gikonyo, presiding over the matter, said the primary issue requiring urgent resolution is the question of shareholding and directorship. He urged the parties to focus on clarifying ownership rather than prolonging procedural battles.
Macharia called on the Insurance Regulatory Authority and the Office of the Attorney General to step in and clarify the official position. He argued that the regulator and the government office responsible for company records should present clear documentation identifying the lawful shareholder of Directline.
He told the court that he could not provide documentation he did not possess in relation to the contempt application, maintaining that the core issue remains ownership and regulatory clarity.
Justice Gikonyo stressed that the issue had to be settled quickly, pointing out that insurance firms are regulated businesses and that there can't be any doubt about who owns them.
Macharia told the court that banks and insurance businesses had to follow tight rules. The Insurance Regulatory Authority is in charge of keeping an eye on insurance companies. He argued that such oversight should extend to ensuring clarity over shareholding structures.
The judge encouraged the parties to agree on a focused approach to answering the ownership question, saying that if the issue cannot be settled in court, it may not be resolved elsewhere.
The dispute is scheduled for further hearing on April 13, 2026, as the court pushes for clarity over who legally controls one of Kenya most prominent motor vehicle insurers.
