Court Bars Citizen TV from Airing Campaign Against Directline Assurance
The High Court has ordered Royal Media Services (RMS), owned by prominent businessman S.K. Macharia, to stop broadcasting a controversial advertisement targeting Directline Assurance on its television and radio platforms.
The advert alleged that insurance policies issued by Directline Assurance were invalid and warned that the company would not honor any outstanding claims.
In issuing an injunction on Wednesday, January 22, Justice Francis Gikonyo ruled that the media campaign had caused significant financial harm to the insurance provider.
“The 1st defendant (S.K. Macharia), along with his agents, employees, representatives, or any other associated party, is hereby prohibited from publishing, printing, distributing, broadcasting, or otherwise disseminating these advertisements,” stated the court order.
Directline Assurance, the largest provider of insurance for Public Service Vehicles (PSVs) in Kenya, had filed a legal petition seeking to halt the negative campaign. The firm argued that the advert was damaging its reputation and misleading the public into doubting the validity of its insurance policies.
The company defended its credibility, insisting that its insurance products were valid and that it was continuing to operate and honor legitimate claims.
During a press briefing held in Nairobi on January 21, Directline’s intermediaries and partners in the transport industry publicly reaffirmed the insurer’s operational status. Acting Principal Officer Sammy Kanyi highlighted the company’s commitment to settling claims.
“We have remained fully operational, and between January 1 and January 21, 2025, we paid Ksh108 million in claims. On January 21 alone, we disbursed Ksh16.8 million,” Kanyi disclosed.
In response to the controversy, the Insurance Regulatory Authority (IRA) also issued a statement reassuring the public of the insurer’s stability. The regulator refuted claims made in the campaign and confirmed that Directline Assurance was still fulfilling its obligations to policyholders.
“All insurance policies issued by Directline Assurance Company Limited remain valid and enforceable. Policyholders should be confident that their contracts are still in effect, and the company is fully liable for any claims under those policies,” IRA assured.
Separately, S.K. Macharia had previously engaged in a legal dispute with Directline Assurance over shareholder details. On December 17, 2024, Macharia, through his lawyer Danstan Omari, wrote to the IRA demanding the removal of four shareholders’ names from the company’s official CR12 document.
In the letter addressed to IRA’s Chief Manager, Godfrey Kiptum, Macharia warned that legal action would follow if the names were not removed. The matter further escalated tensions between the media mogul and the insurer.
This case has highlighted the contentious relationship between the two entities, with the court’s decision adding a new dimension to the ongoing dispute.
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