This archive report was first published on 8 September 2019.
On September 4, 2019, SK Macharia, the billionaire owner of Citizen TV, declared himself the chairman and director of the troubled DirectLine Assurance Company, taking over its management in a move that has sparked controversy.
John Gichia Macharia, SK Macharia's late son, died in a road accident in 2018, leaving behind a significant stake in the company. The company's other directors include Geoffrey Radier, Kevin McCourt, James Gacoka, and Elizabeth Waichigo.
However, the insurance regulator has instructed shareholders of Directline Insurance Company Limited that they risk legal action if they fail to comply with the authority's directive. In a letter addressed to the shareholders, the Commissioner of Insurance and IRA chief executive Godfrey Kiptum pointed out that the alleged appointment of a chairman of the company is irregular and in contravention of the provisions of the Insurance Act.
According to a letter seen by Mpasho.co.ke, Macharia wrote to the company's staff stating that he was made the decision 'in the interest of preserving the company.' The letter also saw the suspension of Terry Wijenje, who was the Managing Director, CEO, and principal, and her replacement by Isaac Ngaru in an acting capacity.
DirectLine Assurance Company was established in 2005 and had become the largest PSV underwriter in the country by the end of 2015, with a market share of 60 per cent. However, its troubles have seen the firm make a loss of Sh32,921 million between July and September 2018, with a market share of only 2.09 per cent.
