SK Macharia urges court to resolve Directline shareholding, directorship dispute swiftly

Royal Credit Limited chairperson and founder of Directline, Dr S.K. Macharia,  who appeared for contempt proceedings, recounted the frustrations he has faced as the founder of Directline. The company, whose shares and directorship are under legal scrutiny, has been subject to alleged fraudulent transfers.

Dr Macaharia narrated his ordeal in a scramble that has seen the CR12 of the company altered and shareholding as well as directorship tampered with.

He told the court that the Insurance Regulatory Authority (IRA) and the Office of the Attorney General should resolve the primary issues of shareholding and directorship.

"The courts should be able to ask the regulator to come face the court and the Attorney General, who is the custodian of all shareholding companies in this country in a document called CR12, and tell the court who is the legal shareholder of Directline," said Dr Macharia.

Dr Macharia, who was appearing for contempt of court proceedings, told the court that he was in no position to provide what he did not have in terms of the contempt of court subject matter.

Justice Gikonyo told the parties that the single biggest issue for resolution at Directline is shareholding and directorship.

"There are two regulated bodies in this country: banks and insurance companies. Banks are regulated by CBK and insurance by IRA," said Dr Macharia.

Justice Gikonyo advised the parties to seek a speedy resolution of the contested question of shareholding at Directline.

"That matter of shareholding should be given prominence... tukubaliene jinsi ya kujibu hiyo swali ameuliza. If it cannot be answered here, it will not be answered anywhere," said Justice Gikonyo.

The matter is scheduled to come up again on April 13, 2026, for hearing.