High Court Finds SK Macharia in Contempt Over Directline Assurance Dispute

The High Court has held Royal Media Services chief executive Samuel Kamau Macharia in contempt of court for disobeying orders that barred him from interfering with the management and operations of Directline Assurance Limited. The judge gave him a final opportunity to avoid sentencing by apologising and undertaking to obey future orders.

The contempt application arose from claims that Macharia stormed the insurer’s offices at Hazina Towers in September 2025, removed the chief executive and board, and installed a new management team. The actions were alleged to have breached earlier court orders issued in October 2024 restraining several defendants from hiring or terminating staff, accessing company property or interfering with business operations.

Macharia and other shareholders have been locked in a multi-year battle for control of Directline. The dispute involves contested corporate control, banking transactions, enforcement of an arbitration award and competing claims over management of the company.

The court dismissed Macharia’s application seeking the judge’s recusal, finding no evidence of bias. It held that judges have a duty to hear cases unless compelling reasons for recusal exist. The contempt application brought by Directline was allowed.

After reviewing the evidence, the court concluded that Macharia had disobeyed the orders. It specifically found him in contempt for relocating the company’s offices from Hazina Towers and threatening staff with dismissal. Allegations that doors had been welded shut were noted, though police confirmed that company officials had themselves removed the welding.

The judge stopped short of immediate sentencing, citing Macharia’s age and his claim to be law-abiding. He was directed to apologise and undertake not to interfere with Directline until the main suit is determined. Failure to comply will result in sentencing. The matter is scheduled for mention on November 18, 2026.

Directline was founded in 1998 by Macharia’s late son John Macharia and once dominated the public service vehicle insurance segment. Market share has fluctuated in recent years, with Africa Merchant Assurance briefly taking the lead before Directline recovered ground in the first quarter of 2026.

The ruling adds another chapter to a protracted ownership and management contest at one of Kenya’s significant PSV underwriters. Compliance with the contempt order will determine the next phase of the litigation.