This archive report was first published on 30 September 2019.
Published on September 30, 2019, a power struggle between Royal Media Services owner SK Macharia and the Insurance Regulatory Authority (IRA) has led to the arrest of two individuals.
Anthony Macharia and Bashir Ahmad Mburu were charged with obstructing an inspection officer from conducting an inspection as required by the IRA.
The dispute revolves around the appointment of new directors for Directline Insurance Company, with the IRA rejecting the move and instructing shareholders to stop any physical involvement in the company's operations.
IRA Commissioner of Insurance and CEO Godfrey Kiptum directed the shareholders to comply with the Authority's directive, warning that failure to do so would result in regulatory action.
The Commissioner pointed out that the alleged appointment of a Chairman of the company is irregular and in contravention of the provisions of the Insurance Act.
“The purported appointments of Chairman, Directors and CEO is against the provisions of the Insurance Act and the Corporate Governance Guidelines which require that such a person be approved by the Commissioner before they can take up those positions,” he said.
The 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 by appointing three directors to the board.
