The High Court has issued a directive to Royal Media Services (RMS), owned by prominent businessman S.K. Macharia, to immediately cease airing a controversial media campaign targeting Directline Assurance on its television and radio platforms.
The campaign alleged that insurance policies from Directline Assurance were invalid and that the company would not honor outstanding claims.
In granting the injunction on Wednesday, January 22, Justice Francis Gikonyo noted that the campaign had caused significant financial harm to the insurance provider.
“The 1st defendant, S.K. Macharia, along with his agents, employees, and any other associates, is hereby restrained from publishing, broadcasting, or distributing any advertisements of this nature,” the court ordered.
Directline Assurance, Kenya’s largest insurer of Public Service Vehicles (PSVs), had filed a petition urging the court to stop the broadcast of the cautionary message by Citizen TV, which discouraged motorists from purchasing its insurance products.
The insurer maintained that its policies were valid and its operations were ongoing despite the damaging claims made in the advertisement.
On January 21, representatives of Directline held a press briefing in Nairobi, where key partners from the transport industry reaffirmed the company’s stability. They highlighted its continued issuance of insurance policies and prompt settlement of legitimate claims.
According to Sammy Kanyi, Directline’s Acting Principal Officer, the company paid out Ksh108 million in claims from January 1 to January 21, 2025, including Ksh16.8 million disbursed on January 21 alone.
In response to the controversy, the Insurance Regulatory Authority (IRA) defended Directline Assurance and criticized S.K. Macharia’s actions.
“All insurance policies issued by Directline Assurance remain valid and enforceable. Policyholders can rest assured that their contracts are legitimate, and the insurer is fully liable for any claims,” the IRA stated.
The dispute extends back to December 17, 2024, when Macharia sent a letter through his lawyer, Danstan Omari, demanding the IRA remove the names of four shareholders from the company’s CR12 records. Macharia warned that failure to comply would lead to legal action.
This legal clash highlights the tensions between the media giant and the insurance firm, as well as the broader implications for the insurance sector in Kenya.
