Directline Assurance Company owned by billionaire S.K. Macharia has abruptly ceased all insurance operations, effective September 10, 2024, following a significant internal dispute involving fraudulent shareholders. Directline Assurance has been a major player in the motor vehicle insurance services.....CLICK HERE TO READ THE FULL ARTICLE>>>
The company announced that all future transactions must now be conducted exclusively through its original shareholders, Royal Credit Limited, while dismissing any alternative shareholders listed in CR12 documents as fraudulent.
Directline has accused various parties of using falsified CR12s to mislead regulatory bodies, courts, and banks, resulting in severe financial and operational difficulties.
The fraudulent CR12s, according to Directline, have been a source of mismanagement and misuse of company funds.
Directline’s decision to suspend operations includes halting the issuance of new insurance policies and discontinuing all insurance business.
As part of the move, the Association of Kenya Insurance Companies (AKI) has been instructed to stop issuing insurance certificates or stickers under Directline’s name.
Additionally, banks dealing with Directline have been warned to disregard the alleged fake CR12 circulating, which misrepresents the company’s ownership and directorship.
Directline Assurance claims that the Insurance Regulatory Authority (IRA) has been aware of the fraudulent CR12 since 2005 but has allowed its continued use.
According to the company, the individuals listed on the fake CR12 have no legitimate connection to the company and have allegedly misappropriated over Sh7 billion, including Sh2.3 billion paid to a UK-based company, Actis. In an effort to resolve the situation, Directline has brought the matter to the attention of senior government officials.
These include the Head of Public Service Felix Koskei, the Treasury Cabinet Secretary John Mbadi, the Interior Cabinet Secretary Kithure Kindiki, and the Central Bank Governor Kamau Thugge, along with other key figures involved in business registration and regulation.
The company has called on these officials to intervene and address the long-standing issue of fraudulent shareholders, which has hampered the company’s operations for nearly two decades….CLICK HERE FOR MORE ARTICLE>>>
