Directline CEO petitions court to arrest Kenyan media mogul SK Macharia

The chief executive officer of Directline Assurance Ltd., Sammy Kanyi, has asked the High Court to hold Kenyan media mogul Samuel Kamau (SK) Macharia in contempt, saying he ignored standing court orders and illegally reconstituted the insurer’s board of directors.

Court filings state that on Sept. 22, Macharia entered Directline’s offices at Hazina Towers with a group that forced its way inside. He then announced leadership changes, naming Stella Kinoti as head of finance, Wilson Wambugu Maina as principal officer, and James Mari as head of IT. Security footage reportedly shows him giving instructions in the reception area.

Directline leadership battle raises policyholder concerns

Kanyi said he has since reported the incident to Central Police Station and informed the Insurance Regulatory Authority. Police officers visited the premises afterward. “He announced he had fired me. He also led a group to break doors, yet there is a court order stopping such moves. Let the authorities take necessary action,” Kanyi said.

Directline’s lawyer, Maina, told the court that Macharia’s actions directly violated orders issued on Oct. 4, 2024, and could disrupt the company’s operations, potentially affecting policyholders. The court was asked to direct police to enforce its rulings and remove the appointees installed by Macharia.

Court bars Macharia from Directline control

Earlier this year, the High Court barred Macharia from interfering with Directline’s management. Judges issued injunctions preventing him or his associates from giving financial instructions, signing cheques, or directing banks and contractors without approval from the company’s board or shareholders.

In another case, the court restrained him from using Royal Media Services, his broadcasting company, to warn the public against dealing with Directline. The insurer said those broadcasts were defamatory and damaging to its reputation.

Justice Francis Gikonyo, who handled that matter, said Directline must be treated as a distinct legal entity whose financial stability required protection. He has now certified Kanyi’s contempt application as urgent, with a hearing set for Dec. 13, 2025.

Directline reports $31.7 million income

Directline was founded in 1998 by Macharia’s late son, John Gichia Macharia, and formally licensed in 2005 as a public service vehicle insurer. After his son’s death in 2018, SK Macharia named himself chairman, escalating a boardroom struggle that has lingered since.

The 83-year-old media and finance executive also chairs Royal Credit Ltd. and has long held a stake in Directline. The company is one of Kenya’s most recognized motor insurers, reporting Ksh4.1 billion ($31.7 million) in income in the 2022–23 fiscal year through agents, brokers, and banks.

Macharia blames directors after $54.2 million freeze

But competition has intensified. Africa Merchant Assurance, which counts allies of President William Ruto among its shareholders, now leads the market with a 54.71 percent share as of March 2025.

Directline’s troubles deepened in 2019 when Macharia ordered the withdrawal of Ksh400 million ($3.1 million) to finance a housing project under Toy and Suna Holdings.

In June 2024, after regulators froze Directline’s accounts Macharia announced the company’s closure accusing former directors of misusing Ksh7 billion ($54.2 million). Four months later, the court ordered him to return the Ksh400 million ($3.1 million) tied to the housing deal.