SK Macharia told to keep off Directline
Insurance Regulatory Authority (IRA) has cautioned Directline Insurance Company shareholders to stop with immediate effect any physical involvement in the operations of the insurer.
The warning comes after businessman S.K. Macharia declared himself chairman and director of the company on Tuesday.
In a letter addressed to Directline shareholders, IRA said action to take control of the company affairs contravenes the provisions of the Insurance Act.
“The purported appointments of Chairman, Directors and CEO is against the provisions of the Insurance Act and the Corporate Governance Guidelines which require that such a persons be approved by the Commissioner before they can take up those positions,” Godfrey Kiptum, IRA Commissioner of Insurance and CEO said yesterday.
Macharia had written to the Directline staff, saying he was acting “in the interest of preserving the company”. Directline the country’s largest Public Service Vehicle underwriter.
He took the chairmanship of the company, arguing that Royal Media Services, Royal Credit Limited, S.K Macharia, Purity Macharia (his wife) and the estate of the late Dan Karobia are the firm’s majority shareholders.
Other company directors include Geoffrey Radier, Kevin McCourt, James Gacoka and Ms Elizabeth Waichigo. Macharia’s son, John Gichia Macharia, who died in May last year, was also a major shareholder.
But Kiptum said the ultimate responsibility to have control over an insurance company is vested in directors.