This archive report was first published on 5 September 2019.
On September 3, 2019, billionaire businessman S.K. Macharia staged a 'coup' and took over the management of Directline Insurance Company, imposing himself as chairman and director.
However, the Insurance Regulatory Authority (IRA) has now directed all shareholders of the insurance firm to stop with immediate effect any physical involvement in its operations.
Commissioner of Insurance Godfrey Kiptum, who doubles as the IRA CEO, directed the shareholders to comply with the Authority's directive, failure to which the Authority will take regulatory action provided under the Insurance Act.
According to Kiptum, the alleged appointment of Macharia as the Chairman of the company is irregular and in contravention of the provisions of the Insurance Act.
After taking charge of the troubled insurer, Macharia suspended Ms Terry Wijenje as managing director, CEO, and principal and appointed Isaac Ngaru in an acting capacity.
IRA has been making efforts to find a solution to the corporate governance issues affecting Directline Insurance, including intervening in the management of the insurer as provided for under the Insurance Act by appointing three directors to the board of the insurer.
