This archive report was first published on 4 September 2019.
September 4, 2019
SK Macharia, the billionaire founder of Royal Media Services, has staged a corporate coup by taking control of DirectLine Assurance Company, the largest public service vehicle (PSV) underwriter in Kenya.
According to a letter dated September 3, Mr. Macharia declared himself chairman and director of the company, citing the need to 'preserve the company'.
He also suspended the company's managing director, Terry Wijenje, and appointed Isaac Ngaru in an acting capacity.
Mr. Macharia's move has left the company's staff in shock, with many wondering what this means for the future of the company.
DirectLine Assurance Company has a complex ownership structure, with shareholders including Royal Media Services, Royal Credit Limited, and the estate of the late Dan Karobia.
Mr. Macharia's son, John Gichia Macharia, who passed away in May 2018, was also a major shareholder.
It remains to be seen how this move will affect the company and its stakeholders.
