Directline Assurance Company under close supervision

The Kenyan Insurance Regulatory Authority (IRA) has suspended the closure of Directline Assurance Company, a few hours after the company announced it had ceased operations.

SK Macharia, Chairman of Royal Credit Limited, one of Directline's shareholders, announced in a statement that the company had stopped operations, dismissed all its employees and dissolved its board of directors. SK Macharia's announcement came in the wake of the IRA's decision to close all Directline bank accounts. According to SK. Macharia, the company was facing difficulties following the embezzlement of 7 billion KES (53.7 million USD) by its former directors, a problem that the authority had failed to resolve adequately.

The regulator responded by stating that the insurer was still operational and licensed, and that only the IRA has the legal power to approve, suspend or cancel the operations of any insurance company doing business in the country. This means that the decision to close cannot be taken by any unauthorized party.

Directline has been placed under close supervision by the IRA, which will take appropriate action in compliance with Kenyan law.