SK Macharia, the owner of Directline Assurance, has given the Insurance Regulatory Authority (IRA) a 24-hour ultimatum to remove the names of four shareholders from the company’s CR12 document.
In a letter addressed to IRA Chief Manager Godfrey Kiptum, Macharia’s lawyer, Danstan Omari, warned that legal action would follow if the names were not removed within the specified time.
Speaking to the press outside the Nairobi court, Omari accused Kiptum of allegedly assisting the four shareholders in embezzling company funds, leading to a significant financial loss.
Omari claimed that the actions of the suspended shareholders had caused a sh 7 billion loss to the company.
The lawyer also noted that, despite SK Macharia’s earlier requests to revoke the CR12, Kiptum had taken no action.
Omari explained, “We have written to Kiptum stating that he held an informal meeting with Macharia and government officials, where it was agreed that the CR12 would be rectified.”
He added that this decision had been communicated to Treasury Cabinet Secretary John Mbadi and other relevant government figures.
Omari emphasized that Directline Assurance, which controls 65% of Public Service Vehicles (PSVs) in the country, legally belongs to Macharia, the boss of Royal Media Services (RMS).
In his ultimatum, Macharia also called on Treasury CS John Mbadi and Principal Secretary Chris Kiptoo to intervene and prevent the shareholders from taking control of the company’s assets.
Earlier in September, Macharia took legal action to block an alleged takeover of the company by individuals he claimed sought to forcefully acquire it without proper approval.
Represented by Omari, Macharia accused these individuals of using misappropriated company funds to purchase luxury cars and property in Garden City.
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