Directline Assurance faces liquidation hearing as losses leave it KSh2.6bn in the red

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Directline Assurance, the insurer that covers more matatus and buses than any other in Kenya, is facing a fresh bid to have it wound up, as new industry figures show its debts now run KSh2.6bn ahead of everything it owns.

Nine creditors have asked the High Court in Malindi to liquidate the company. A gazette notice from the court’s Deputy Registrar says their petition was presented on September 4 under Insolvency Cause No. HCCOMMIP/E001/2026, and it is set for hearing on November 23. Any creditor or shareholder who wants to support or oppose it may appear in person or through a lawyer.

At least seven petitions this year

The Malindi case is not the first. In July, three claimants led by Yusra Ahmed Abubakar filed a liquidation petition at the High Court in Garissa, and two more petitions brought by minors through their guardians were lodged at the High Court in Garsen. Those matters were listed for October 1.

In all, at least seven creditor-led petitions involving 34 named creditor positions have been filed in Garissa, Malindi and Garsen between July and September, according to a tally by The Kenyan Wall Street. The amounts claimed have not been disclosed, and no court has issued a final liquidation order. A petition is only a request: Directline remains licensed and its policies stay valid unless a court or the Insurance Regulatory Authority (IRA) rules otherwise.

KSh548m loss in six months

The petitions come as the company’s finances keep sliding. IRA data for the six months to June 2026 show Directline lost KSh548.21m, after a KSh929.8m loss for the whole of 2025.

Its liabilities stood at KSh9.68bn against assets of KSh7.08bn at the end of June, leaving shareholders’ equity at minus KSh2.60bn. Insurance contract liabilities, mostly money set aside for claims, made up KSh9.26bn of that total.

Even so, Directline has been winning business. Its share of the public service vehicle (PSV) insurance market rose to 43.41% in the first half, up from 38.40% a year earlier, as its PSV premiums grew 18.9% to KSh1.26bn. That is nearly 80% of its KSh1.58bn in gross direct premiums.

The whole PSV insurance market grew 5.2% to KSh2.91bn in the period. Amaco’s share fell from 50.75% to 26.79%, while Definite Assurance jumped from 4.74% to 25.03%. The three firms now write 95.23% of PSV cover, so a collapse at Directline would leave thousands of matatu and bus owners looking for a new insurer at short notice. For the wider industry picture, see our ranking of the top insurance companies in Kenya by market share.

A long ownership fight

The insurer has been caught in a boardroom battle between businessman S.K. Macharia and rival shareholders for more than two years. In June 2024, Macharia announced that Directline was shutting down after a disputed KSh400m transfer. The IRA rejected the closure, said existing policies remained valid and put the insurer under closer supervision.

In October 2024, the High Court ordered the KSh400m returned, set up an interim board and directed a forensic audit of the accounts. In May this year, the court adopted an arbitration award on the shareholding. Court filings show Macharia, his wife and Royal Credit hold 9.664%, while AKM Investments, Janus, Sure Invest, Stenny Investment and Triad Networks hold the remaining 90.336%.

What it means for matatu owners

PSV operators cannot run without valid insurance, which they need to keep their road service licence. Owners already squeezed by rising fuel costs, which pushed them to order a 10% fare rise this month, will be watching the Malindi hearing closely. Changes of ownership elsewhere in the sector, such as Absa’s sale of its two Kenyan insurers, show the market is consolidating, but Directline’s future now rests with the courts.