A court ordered the removal from office, staff who were installed by businessman SK Macharia in his bid to take over Directline Assurance Company Limited.
High Court judge Justice Francis Gikonyo told police to remove the officials from the offices as they had violated an earlier order issued by the court.
He added on Friday September 26, 2025 no one except the court has the power and authority to interfere with working of the interim directors sanctioned by the court.
The judge said there is absolute need to remove all such strangers from the premises and offices of the company.
“Accordingly, the OCS, Central Police Station, Nairobi to remove any person or security guards who are preventing entry into the premises or offices of the applicant company the interim directors whom were sanctioned by the court.”
“The order which sanctioned the interim directors be served upon the OCS too,” the order said.
The court re-emphasized the need for parties to observe court orders lest they be held in contempt.
Justice Gikonyo also certified the application to be urgent saying it appears there is interference with the working of the directors who were sanctioned by the court to run the affairs of the company.
“That the court is aware of pending applications herein. But, of great significance is that the court emphasized the need for parties to obey subsisting court orders.”
“On prima facie basis, it appears there is real interference with the working of the interim directors whom were sanctioned by the court to run the affairs of the company,” he said.
The judge warned; “Take notice that any disobedience or non-observance of the order of the court served herewith will result in penal consequences to you and any other person(s) disobeying and not observing the same.”
This was in connection with an application made in court on September 24, 2025 by the assurance company directors against Macharia, banks and ten others.
Macharia had abruptly moved to take over the management of the company on Monday despite there being an order barring the move.
He later wrote to various banks to change signatories of the accounts.
The assurance board however released a statement saying all is well.
In his memo to the banks, Macharia sought to disclose he is the majority shareholder at the firm.
“We write to instruct you to cancel ALL the current bank mandates. The current CR12 is not valid (see attached correspondence from the AG and BRS in particular the letter from BRS to purported shareholders/directors. Once the CR12 i s corrected by BRS, w e shall give you fresh instructions as to who are the correct signatories,” he said in the letter.
He also wrote an internal memo to announce he had appointed the chief operating officer at the firm Wilson Wambugu Maina the new acting Principal Officer
“On behalf of Royal Credit Limited the Majority Shareholder of Directline Assurance Company Limited. I hereby appoint you as the acting Principal Officer of Directline Assurance Company Limited effective 22nd September 2025 at 9.58 AM. Please note that Mr. Sammy Kanyi has been removed from the position of the Principal Officer of this company.”
“You will be assisted b y Ms. Stella Kinoti to act in totality as Finance Director assisted by Ms. Elizabeth Kuria. Mr. Christopher Katiwa will also assist in Sales and Marketing,” the memo September 22, 2025 said.
Kanyi moved to court on Monday and asked that Macharia be cited for contempt of court for removing the board of directors and installing new members in defiance of a court directive.
The firm moved to reassure its clients, partners, and stakeholders that operations remain unaffected after a dramatic incident on Monday.
The drama involved Macharia at its Nairobi offices at Hazina Towers.
The Board of Directors and Management confirmed that the company is fully operational, despite an ongoing shareholder dispute currently before the courts.
“Directline continues to fully comply with all legal processes related to the matter and remains committed to upholding the highest standards of governance and service delivery,” the company said.
The insurer emphasised that it is actively issuing insurance covers and settling all valid claims, stating that Sh1.47 billion had been paid out by mid-September 2025.
The assurance follows chaotic scenes where Directline is headquartered.
Staff reported that Macharia, accompanied by several individuals, entered the premises and announced that he had taken over operations.
According to eyewitnesses, Macharia issued verbal directives, including the dismissal of some employees, and allegedly forced entry into restricted areas of the office.
CCTV footage from the day showed Macharia and his entourage at the company’s reception, apparently issuing instructions to staff.
Kanyi said he had reported the matter to the police and the Insurance Regulatory Authority (IRA).
Court documents show that Macharia has been under a standing injunction issued last year prohibiting him and others from interfering with Directline’s operations.
The order specifically bars them from hiring or terminating employees, issuing directives to contractors, and accessing company offices and conducting financial transactions on behalf of Directline without shareholder or board consent
In a separate case, the courts also stopped Macharia from airing cautionary advertisements about Directline Assurance through his media stations, which include those under Royal Media Services.
The company had argued that the ads were damaging to its reputation and financial standing.
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