Directline Assurance Company, which controls more than 60 per cent of Kenya’s Public Service Vehicle (PSV) insurance market, risks liquidation following a court petition.Six creditors have moved to the Malindi High Court seeking the insurance company's permanent shutdown, with the case now set to be heard later this year.According to a notice issued by the High Court's Deputy Registrar in Malindi, the petition was filed in August 2026, under the Insolvency Act and the repealed Companies Act."A notice is given that a petition for the liquidation of the above-named company by the High Court was on the 27th day of August, 2026, presented to the said Court," read part of the notice.Following the filing of the petition, the court on Friday, October 2, announced that it had scheduled the case for hearing on November 23, 2026, at the Malindi High Court.In the gazette notice obtained by Kenyans.co.ke, the court called on creditors and contributories to appear in person or through advocates to support or oppose the petition.Directline controls 62 per cent of Kenya’s PSV insurance market, making it a major player in the transport sector and a key insurer for motorists across the country.The latest case adds to the legal and regulatory challenges that have affected the company in recent years, including disputes over its operations, assets, and insurance claims.In 2024, the Insurance Regulatory Authority (IRA) placed Directline under heightened surveillance over concerns about its operations and assets.This is after S.K. Macharia, through Royal Credit Limited, announced that Directline had stopped operations, its board had been dissolved, and its employees had been dismissed.In a press statement, the Royal Media Services (RMS) owner said the company's assets had also been taken over by Royal Credit.However, IRA maintained that Directline remained a licensed insurance company and cautioned against actions affecting its assets without the required regulatory approval.
This page contains an attributed headline and the preview text supplied through the publisher’s RSS feed. Copyright in the original reporting belongs to Kenyans.co.ke.
