A Kenyan judge has frozen all ownership and leadership adjustments at Directline Assurance Company Limited while the court examines whether government regulators overstepped their authority in probing the firm's internal operations. Justice Lawrence Mugambi issued the preservation order on Tuesday, preventing the Business Registration Service from modifying corporate records until legal proceedings conclude.
The majority of stakeholders, Sureinvest Company Limited and Triad Networks Limited, argue that the Attorney General violated statutory procedures by launching an inquiry under the Companies Act without first obtaining judicial approval. They claim the investigation responded to grievances from minority investors, Dr Samuel Kamau Macharia and Royal Credit Limited, concerning ownership transfers and board appointments dating back two decades. The petitioners maintain that an arbitration ruling from May 2022 already resolved these matters and assert that regulators excluded them from the inquiry despite requests for participation.
The dispute has generated multiple court filings as various parties seek protective measures or dismissal of the case. Proceedings resume on March 11, 2026. The insurer's market position has weakened from nearly 48 percent in 2024 to roughly 38 percent this year, raising industry concerns about potential disruption to public transportation coverage.
The majority of stakeholders, Sureinvest Company Limited and Triad Networks Limited, argue that the Attorney General violated statutory procedures by launching an inquiry under the Companies Act without first obtaining judicial approval. They claim the investigation responded to grievances from minority investors, Dr Samuel Kamau Macharia and Royal Credit Limited, concerning ownership transfers and board appointments dating back two decades. The petitioners maintain that an arbitration ruling from May 2022 already resolved these matters and assert that regulators excluded them from the inquiry despite requests for participation.
The dispute has generated multiple court filings as various parties seek protective measures or dismissal of the case. Proceedings resume on March 11, 2026. The insurer's market position has weakened from nearly 48 percent in 2024 to roughly 38 percent this year, raising industry concerns about potential disruption to public transportation coverage.
