Dr. SK Macharia, the Chairman of Royal Media Services, has sent a formal letter to Godfrey Kiptum, the Commissioner of Insurance and CEO of the Insurance Regulatory Authority (IRA), accusing him of failing to correct the directorship of Directline Assurance Company Limited.
Macharia, through his legal representatives Danstan Omari and Shadrack Wambui, claims that Kiptum has ignored his request to update the list of company directors to reflect the names nominated and approved by other shareholders, including Macharia himself.
During a press conference at Milimani Law Courts, Macharia’s lawyers stated that Kiptum had previously agreed to accept the submitted names. However, despite this agreement, Kiptum allegedly appointed a fifth audit team to conduct a review that had already been completed by four previous audit teams, at the expense of Directline Assurance Company Limited.
Macharia and his lawyers accuse Kiptum of abusing his powers and interfering with the company’s leadership. The letter, dated December 17, 2024, alleges that Kiptum has “consistently and unabashedly” used his position to disrupt the company’s management.
The controversy began after the IRA’s findings revealed that four directors appointed on October 4, 2024, had fraudulently acquired shares in the company. This move reportedly blocked Royal Credit, a major shareholder, from appointing directors to the company’s management. As a result, Macharia claims that the firing of the four legitimate directors, alongside unaccounted financial dealings, has jeopardized the company’s operations, leaving its finances vulnerable to mismanagement and embezzlement.
Macharia also contends that Kiptum has been attempting to remove four of the company’s six directors, with the goal of replacing them with “rogue directors” in an effort to siphon off the company’s assets. The dispute centers on allegations of fraudulent diversion of company funds, as well as the wrongful removal of directors without justification.
According to Macharia, no credible audit will support the claim that the four directors were removed for any legitimate reason, further fueling concerns about potential mismanagement and financial irregularities at Directline Assurance.
