The Directline Assurance Company, which dominated over 60 percent of the Kenyan Public Service Vehicles (PSVs) insurance market, has abruptly ceased operations. In a succinct yet impactful statement, Dr. SK Macharia, Chairperson of Royal Credit Limited—the parent company of Directline—announced the termination of all Directline employees and the immediate dissolution of its Board of Directors. Royal Credit Limited is set to take over all assets previously owned by Directline.
According to Dr. Macharia, the closure was precipitated by the Insurance Regulatory Authority (IRA) freezing the company’s bank accounts. He further criticized the IRA for not taking action against former directors of the company, whom he accused of mismanaging Ksh7 billion in funds.
This sudden shutdown has plunged the transport industry into uncertainty, as Directline was the leading motor vehicle insurance provider in the country. The company, which entered the Kenyan market in November 2005, reported an income of Ksh4.1 billion in the 2022/2023 fiscal year, up from Ksh3.6 billion the previous year. This increase was attributed to partnerships with 3,200 agents, 83 brokers, and 17 banks.
Earlier this year, Directline had ambitious plans to diversify its product portfolio and transform operations by transitioning to cashless fares to curb fraudulent claims. However, these plans have now been abruptly halted, leaving a significant void in the market and causing widespread concern within the transport sector.
Press Corp 