Directline seeks jail term for SK Macharia after CEO, board ouster

SK Macharia

City billionaire and media mogul SK Macharia.

Photo credit: File | Nation Media Group

The chief executive officer of Directline Assurance Limited wants businessman Samuel Kamau (SK) Macharia cited for contempt of court for removing the board of directors and installing new members in defiance of a court directive.

Mr Macharia allegedly stormed the insurer’s offices at Nairobi’s Hazina Towers, ejected CEO Sammy Kanyi and the board, and installed a new team.

The court heard that his actions were illegal, in outright contempt of orders issued on October 4, 2024, and put the public and policyholders at risk by halting operations and locking management out of the offices.

Mr Kanyi also wants the court to jail Mr Macharia and bar him from interfering with the company’s management.

“On September 22, 2025 and notwithstanding orders prohibiting him from doing so, the 1st defendant (Mr Macharia) physically entered the plaintiff’s offices and forcefully broke into the principal officer's office on the 19th Floor of Hazina Towers,” Mr Maina said.

He urged the court to hear the case urgently and direct the Central Police Station boss to enforce the orders and remove those installed by Mr Macharia.

Mr Maina said Mr Macharia claimed that the shareholders, Royal Credit Ltd and Samsoni Plc, had terminated the board’s directorship, which included Tom Otieno Odongo, Maina Mwangi, Titus Karanja, and Kenneth Ndura.

He added that Mr Macharia then installed Stella Kinoti as head of finance, Wilson Wambugu Maina as principal officer, and James Mari as head of IT.

“To effect these purported changes in the plaintiff’s management, the 1st defendant, along with his personal security team, physically broke into the plaintiff’s offices on the 19th Floor of Hazina Towers and subsequently barred the company’s principal officer and its directors from accessing the said offices, unlawfully halting the company’s operations,” he said.

High Court judge Francis Gikonyo certified the application as urgent and directed that it be heard on December 13, 2025. He cautioned the parties to respect the existing orders.

“The application is based on contempt of court. Thus, certified to be urgent,” said the judge.

Mr Macharia and other shareholders have long been fighting for control of the underwriter.

The ownership dispute was referred to arbitration, resulting in an award published on May 11, 2022. Applications for recognition, enforcement, and to quash the award are still pending before the High Court.

Directline, once a market leader in commercial PSV insurance after its establishment in 1998 by John Macharia, the late son of the Royal Media Services chairman, previously commanded more than half of the industry’s premium base.

The PSV segment covers motorists and passengers for death, injuries, and vehicle damage from accidents.

However, Africa Merchant Assurance, partly owned by President William Ruto’s family and associates, has since overtaken Directline, holding a 54.71 percent market share at the end of March 2025, up from 37.51 percent in December 2024.

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