Royal Media’s SK Macharia Gains Legal Win Against DCI Over Directline
Royal Media Services (RMS) owner SK Macharia has secured a significant legal reprieve, with the High Court issuing an order on Wednesday, November 6, blocking officers from the Directorate of Criminal Investigations (DCI) from conducting any searches on his property. This decision comes amid a high-profile case involving the mogul, the Insurance Regulatory Authority (IRA), and the contentious dissolution of Directline Insurance.
The order, granted by High Court Magistrate Dolphina Alego, is set to remain in effect until March 3, 2025. “We will return on March 10th, 2025, for the hearing of the application; the status quo will remain,” ruled Alego, signaling a setback for the detectives working on the case.
Macharia had initially moved to court on October 28, seeking protection against what he described as an untimely search order that did not allow him adequate opportunity to respond. Represented by lawyer Danstan Omari, Macharia argued that, as the primary shareholder, he acted within his rights when deciding to dissolve Directline Insurance. Omari emphasized, “Macharia is the main legally recognized shareholder, and no one else, including his grandchild, has authority to speak on behalf of the company’s shareholders.”
The case escalated after the DCI petitioned the court to repossess three vehicles owned by Macharia and gain access to RMS offices for document searches relevant to the investigation. Compounding the case’s complexity, Macharia’s grandchild has been locked in a protracted legal dispute with the media mogul over the management and ownership of Directline Insurance.
The IRA’s involvement highlights the dissolution’s potential impact, as Directline Insurance had a controlling share of over 70% of the country’s motor insurance market. Industry concerns spiked after Directline ceased operations on September 10, prompting the Association of Kenya Insurance Companies (AKI) to halt the issuance of insurance certificates and stickers on the insurer’s behalf.
The court’s latest order is a substantial reprieve for Macharia, providing a temporary shield against the DCI’s search activities as the high-stakes legal battle unfolds.
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Royal Media’s SK Macharia Gains Legal Win Against DCI Over Directline
