Court orders SK Macharia to wire back KSh 400m he transferred from Directline

• Justice Alfred Mabeya declared the withdrawal of funds as illegal and unlawful as it was intended to cripple the firm financially
• The money was transferred from Directline’s Diamond Trust Bank account to Toy and Suna Holdings Ltd on May 16
• On June 10, SK Macharia announced that he had ceased the operations of Directline Assurance Company and terminated employees’ contracts

Ekwutosblog journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.

The court has ordered Kenyan businessman SK Macharia to wire back KSh 400 million he transferred from Directline Assurance Company Limited.

Why court ordered SK Macharia to return funds

Justice Alfred Mabeya declared the withdrawal of funds as illegal and unlawful as it was intended to cripple the firm financially.

Business Daily reported that the judge ordered Macharia to return the money to the account it was taken from.

“This is in order to meet the ends of justice and to secure the interest of the policyholders of the plaintiff and the claimants for compensation,” Mabeya ruled.

According to Tech Cabal, the money was transferred from Directline’s Diamond Trust Bank account to Toy and Suna Holdings Ltd on May 16.

The Insurance Regulatory Authority (IRA) noted the transaction was a scam meant to defraud the company’s beneficiaries and policyholders.

Why SK Macharia stopped Directline operations

On Monday, June 10, SK Macharia announced that he had ceased the operations of Directline Assurance Company.

Macharia, who chairs Royal Credit Limited, which owns the insurer, said all employee contracts had been terminated.

The tycoon announced that the company’s board of directors would dissolve immediately and Royal Credit Limited would acquire all of Directline’s assets.

Citizen TV reported that while shutting down the insurer, Macharia accused the Insurance Regulatory Authority (IRA) of freezing Directline Assurance Company’s bank accounts.

SK Macharia loses case against grandson

Earlier,  Ekwutosblog reported that SK Macharia lost control of a KSh 1.2 billion estate in a row with his grandson.

Macharia’s grandson, Adam Kamau, lost his father, John Gichia, in a tragic road accident in April 2018.

Gichia left behind a KSh 1.2 billion estate that was the subject of an inheritance fight, but the court ruled in Kamau’s favour.