S.K Macharia Narrates Ksh8B Heist & Warns Motorists Using Directline Insurance
Royal Media Services owner S.K Macharia has moved to court as the battle for the ownership of Directline Insurance escalates.
Through his lawyer Danstan Omari, Macharia revealed that Directline was grabbed from him and forcefully taken over by other persons who harbored an interest in the insurance company and its prospects.
Speaking after filing a petition at the Milimani Courts on Friday, Omari narrated how Macharia and his wife Gathoni were ejected from the company in a hostile takeover.
According to the lawyer, S.K Macharia had applied for the license of two of his companies, Royal Media Services and Directline, but before getting the license, they needed to raise Ksh100 million as a deposit. They would later secure the green light to proceed.
Royal Media Services founder S.K Macharia during the Sagana Meeting held on Saturday, January 30
However, before acquiring the licenses, the laws changed and the license fee was raised to Ksh250 Million.
They raised the money and acquired the license for the insurance company but plans to start building Directline temporarily took a backseat as they concentrated on Royal Media Services.
When his late son grew up, he activated the Directline license which operated under him until he passed on.
Heist
Omari then revealed that the company was transferred to people who were not the original investors after which Macharia was barred from accessing the insurance company’s offices.
Macharia launched a complaint with the Insurance Regulatory Authority (IRA) which through other agencies such as the Directorate of Criminal Investigations (DCI), National Intelligence Service (NIS) and EACC investigated and found out that the grabbers had allegedly swindled premiums worth Ksh8 Billion.
The accused persons allegedly proceeded to buy cars, and houses in Garden City using money siphoned from the insurance company.
Directline Policyholders Warned
Macharia proceeded to warn Kenyans insured with Directline that the policies may be invalid.
“My appeal to the government is that 98% of people using PSV are not insured, they are cheated that they are insured, they are exposed to serious risks, and anybody who will be involved in misfortune you are alone.”
“There is no insurance in the vehicle that has Insurance Direct Line stickers.” lawyer Omari warned.
Macharia now wants the Registrar of Companies to register him and his wife as the company’s rightful owners.
The move to take over the company’s ownership comes at a time when SK Macharia announced the suspension of insurance activities at Directline.
The Directline Assurance Company controls up to 65 percent of the Public Service Vehicles (PSV) insurance services market share in Kenya.
A photo of matatus at a bus terminus in Nairobi, Kenya.
Photo
Motor Trends
