Involving Directline AssuranceRoyal Credit Firm Strongly Denies Selling Any Shares in Directline

Kenyans, investors, and other key stakeholders are being warned to stay alert about a new scam that falsely claims shares of Directline Assurance are up for sale. The alert follows reports that Royal Credit Limited, a company associated with business mogul Dr. S.K.

Macharia, is allegedly selling 90% of its stake in Directline — a claim the company has now firmly denied.

In a formal statement released by Royal Credit Limited, the company made it clear that Directline Assurance is a privately held firm, and none of its shares are being offered for sale — despite rumors and a viral public notice claiming otherwise.

The statement, dated July 18 and addressed to the Insurance Regulatory Authority (IRA), expressed deep concern over a fraudulent advertisement that has been circulating.

According to Royal Credit, the ad falsely claimed that 90% of Directline’s shares were available at Ksh81 each, and it was even signed off by individuals claiming to be company directors and shareholders.

A photo showing members of the Directline team attending the Nairobi Intermediaries and Tied Agents mid-year dinner in July was also used — possibly to make the scam appear more legitimate.

“We have come across a fraudulent advertisement claiming that 90% of Directline Assurance Company Limited (DAC) shares are being sold. The ad is signed by people falsely claiming to be directors acting on behalf of fake shareholders,” the letter from Royal Credit stated.

Royal Credit further emphasized that no consent had been given to sell any of its shares and dismissed the ad as completely false. The company pointed out that the public notice was issued without the knowledge or permission of any genuine shareholders.

Calling the notice part of a deceptive scam designed to exploit unsuspecting Kenyans, Royal Credit advised the public to remain cautious and avoid falling victim to what it called a corrupt and manipulative scheme.

“The public should disregard the fake advertisement and avoid being lured into a fraudulent trap. Anyone who buys into this false sale stands to lose their money for absolutely no valid reason,” the statement warned.

In addition to warning the public, Royal Credit has also requested that the IRA investigate whether any forged documents relating to the alleged sale have been submitted.

The company also questioned the legitimacy of the individuals behind the scam, seeking clarification on whether the IRA had given any kind of written approval to these actors.

“IRA is kindly asked to confirm whether it has granted written authorization to the individuals claiming to be selling Directline Assurance shares,” the letter continued.

Royal Credit has advised potential investors and the general public to exercise due diligence before engaging in any kind of financial transaction involving company shares, to protect themselves from fraud and monetary loss.

It’s worth noting that Directline Assurance has experienced several internal disputes and power struggles over the years, which may have opened the door for scammers to exploit the situation.

The bottom line: No Directline shares are on sale, and Kenyans are urged to be extra careful and verify any investment opportunities before putting their money at risk.

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