9 Creditors Take Directline Assurance To Court In Bid To Secure Liquidation Order

Directline Assurance Company Limited has come under renewed scrutiny after a new court notice outlined a key development in its legal proceedings.

In a Gazette Notice dated September 3, 2026, the Deputy Registrar of the High Court of Kenya at Malindi announced that nine creditors had filed a liquidation petition against Directline Assurance Company Limited.

The court received the petition on September 4, 2026, under Insolvency Cause No. HCCOMMIP/E001/2026. It seeks the liquidation of the insurance company under the Insolvency Act.

“NOTICE is given that a petition for the liquidation of the above-named company by the High Court was on the 4th September, 2026 presented to the said Court,” the notice read in part.

Directline Assurance Faces Liquidation Petition at Malindi High Court

The notice states that the High Court has scheduled the hearing for November 23, 2026, at Malindi.

Creditors or other parties entitled to participate in the proceedings may appear in person or through their advocates to support or oppose the petition.

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The notice states that a copy of the petition can be obtained from Wambua Kilonzo and Company, the advocates handling the matter, upon payment of the prescribed charge.

“Any creditor or contributory of the said company desirous to support or oppose the making of an order on the said petition may appear at the time of hearing in person or by his advocate for that purpose and a copy of the petition will be furnished by the undersigned to any creditor or contributory of the said company requiring such a copy on payment of regulated charge for the same.”

How Ksh7 Billion Allegation Became Part of the Directline Assurance Dispute

Directline Assurance Company Limited is facing a liquidation petition at the High Court in Malindi, adding a new development to a long-running dispute over the insurer’s ownership and control.

In June 2024, S.K. Macharia, through Royal Credit Limited, announced that Directline had closed, its board dissolved, its staff dismissed, and its assets transferred to Royal Credit.

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The Insurance Regulatory Authority (IRA) rejected the closure announcement, stating that Directline remained licensed and operational. The regulator also said that only the authority could suspend or close an insurer and confirmed that policyholders’ policies remained valid.

Macharia alleged that the company’s ownership records, including its CR12, had been fraudulently altered. He also accused former directors of misappropriating approximately KSh 7 billion.

These allegations are disputed and form part of the ongoing legal dispute.

Court filings cited that Macharia, his wife and Royal Credit hold a combined 9.664% stake in the company. According to the filings, AKM Investments, Janus, Sure Invest, Stenny Investment, and Triad Networks collectively hold the remaining 90.336%.

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