Conflict among Directline shareholders over share sales silenced by court order
In a complex and sensitive case, the ownership dispute between Directline Assurance and Samuel Macharia Kamau and his affiliated businesses is currently before the court. The High Court has issued a gag order to certain shareholders, including Samuel Kamau, preventing them from publishing information related to the business.
The insurer, a major provider of insurance services for public service vehicles (PSVs), claims that on July 18, 2025, Samuel Macharia Kamau and his affiliated businesses published a report warning the public against purchasing shares in the entity. The gagging orders imply allegations of improper disclosure or dissemination of sensitive business information by one or more shareholder factions.
The court interventions reflect a serious conflict over shareholder rights and control within the company. Allegations suggest that Directline Assurance's management is accused of secretly deciding to sell 90% of its shares, a move that the shareholders claim is part of a corrupt and fraudulent scheme designed to defraud the public. The shareholders have claimed that the information published is defamatory, false, and malicious to Directline Assurance.
Justice Mulwa has extended the temporary injunctive orders against the defendants until September 25, 2025. An inter partes hearing is scheduled for the same date. The court recess will be from August 1, 2025 to September 16, 2025.
The affidavit supporting the case mentions an ongoing dispute over control and ownership of the insurance business. It also notes that there is a pending application to set aside the arbitral award published May 11, 2022, and another to enforce the award as a decree.
The disputes over control and ownership of Directline Assurance were referred to arbitration, but the status of the arbitration is not detailed in the available information. The case is currently before the court, with the High Court playing an active role in controlling the information flow between the disputing shareholders.
The ongoing legal battles have reportedly caused a drop in Directline Assurance's PSV market share, a concern for the company and the industry as a whole. The case remains active and sensitive, with the gag order remaining in force until the case is heard in October.
Sources: [1] The Standard, "Directline Assurance ownership dispute: Court extends gag order," July 23, 2025. [2] Business Daily Africa, "Directline Assurance shareholders locked in legal battle over control and ownership," July 22, 2025. [3] Nairobi Law Monthly, "The ongoing legal battle over Directline Assurance," July 21, 2025.
- The gag order issued by the High Court has led to allegations of improper disclosure or dissemination of sensitive financial information, to which Samuel Macharia Kamau and his affiliated businesses are parties, in the ongoing dispute over the control and ownership of Directline Assurance.
- The ongoing legal battles between Directline Assurance's shareholders, including Samuel Kamau, are causing concern within the insurance industry, as it has reportedly led to a drop in the company's PSV market share.
