The regulator asserts that it has the exclusive authority to “approve, suspend, or cancel” the operations of any insurance company in Kenya, viewing Mr. Macharia’s actions as an overreach of IRA duties.
Read: DPP fights SK Macharia in Sh4bn insurer dispute
Mr. Macharia, chairman of Royal Credit Limited, a shareholder of Directline, announced on Monday that the insurer had ceased operations and laid off all its staff.
“The board of directors of Directline has been dissolved, and all assets taken over by Royal Credit Ltd. All employees have been dismissed, and Directline will no longer issue insurance services,” Mr. Macharia stated.
This announcement caused panic, particularly in public transport, as the firm holds the largest share of the public service vehicle insurance market.
The IRA has now placed the insurer under “heightened surveillance.”
“The Authority will take necessary steps as deemed appropriate, in accordance with the provisions of the Insurance Act, Cap 487 Laws of Kenya, to ensure the insurer’s sustainability and protect the interests of insurance policyholders,” Mr. Kiptum said.
Press Corp 