Directline Assurance has reclaimed its position as the top insurer of public service vehicles (PSVs), marking a comeback in a segment that has seen rivalry and shifting market shares over the past two years.
Fresh data from the Insurance Regulatory Authority (IRA) for the first quarter of 2026 shows Directline accounted for Sh610.16 million or 62.11 percent of the Sh982.41 million premium income booked under motor commercial PSV class of insurance that mostly covers matatus.
The rise in Directline’s market share from 35.67 percent in a similar quarter last year placed it ahead of its main competitor Africa Merchant Assurance Company (Amaco), whose market share fell to 21 percent from 54.71 percent.
Completing the top five commercial PSV insurers in terms of market share in the quarter ended March 2026 are GA Insurance (5.84 percent), First Assurance (3.83 percent) and Intra Africa (2.57 percent).
Definite Assurance, which was licensed in December 2024 and started operations in January the following year, was not ranked after it failed to comply with the IRA submission requirements.
Directline’s rebound signals a reversal of fortunes for the company, which in recent years ceded ground to fast-rising rivals like Amaco, which is linked to politically connected investors.
Amaco, which is partly owned by President William Ruto's family, overtook media investor Samuel Kamau Macharia’s Directline for the first time in the first quarter of 2025.
The latest shifts in market leadership underline the fluid nature of the PSV insurance segment, where dominance can change quickly, depending on pricing, claims management and distribution networks.
Directline has been involved in ownership wrangles that at some point saw Mr Macharia dismiss the company's top leadership and declaring all covers invalid, spooking policyholders.
The insurer has, however, enjoyed some calm in the last few months despite court cases.
The last major disruption on the operations of the company was in September last year when Mr Macharia replaced the top line leadership.
Directline’s market share has been recovering in the last four quarters, moving to 38.4 percent in the second quarter of 2025 to 40.44 percent in the fourth quarter of the same year.
Meanwhile, Amaco’s market share in the premiums-rich but high-risk segment has been falling in the last four quarters, dropping below 50 percent in the third quarter of 2025 before a further decline in the first quarter of this year.
Directline has clawed back market share despite continued wrangles over its control. The legal battles, pitting Mr Macharia against other investors, centre on a disputed shareholder register and have remained unresolved.
Matatu insurance remains highly attractive, largely due to the volume of vehicles and steady demand for mandatory third-party and comprehensive covers.
However, it is also one of the most challenging, given the high accident rates that translate into elevated claims ratios.
The PSV insurance market has undergone swings, including the collapse of two insurers – Xplico and Invesco – in the last three years.
Others with a heavy leaning on matatu insurance to have collapsed are Blue Shield, Standard Assurance, the Kenya National Assurance, United, Lakestar, Access and Stallion Assurance.
