Royal Media Ordered To Halt Advertisements Over Active Court Case
The High Court ordered Royal Media Services (RMS), owned by billionaire S.K. Macharia, to stop conducting a publicity campaign against Directline Assurance on its television and radio stations.
The campaign claimed that Directline Assurance’s insurance policies were invalid and that the firm would not settle any pending claims.
Justice Francis Gikonyo granted an injunction against the commercial on Wednesday, January 22, stating that the campaign had a significant impact on the insurance company’s financial situation.
“Accordingly, the 1st defendant (S.K. Macharia), his agents, employees, or representatives, or any other party, are hereby restrained from publishing, printing, distributing, broadcasting, or otherwise circulating the advertisements,” the court ruled.
The business, which is the largest insurer of Public Service Vehicles (PSVs) in Kenya, has filed a case attempting to compel the court to stop Citizen TV’s cautionary campaign which warned motorists against purchasing insurance policies from them.
The insurance company maintained that the insurance products given were genuine and that the company was still in operation, notwithstanding the advertisement.
High Court orders Royal Media Services (RMS) owned by businessman S.K. Macharia, to halt broadcasting an advertisement that accused Directline Assurance of issuing invalid insurance policies and refusing to settle claims.
— Cyprian, Is Nyakundi (@C_NyaKundiH) January 23, 2025
The court granted an injunction on January 22, 2025,… pic.twitter.com/sn6Y0L5xCp
Directline officials conducted a press event in Nairobi on January 21, during which their intermediaries and transport industry partners reaffirmed that the company was active, providing covers and settling any valid claims.
Directline’s Acting Principal Officer, Sammy Kanyi, stated that the company paid genuine claims from January 1 to January 21, this year.
“We paid Ksh108 million in claims, with Ksh16.8 million paid out yesterday, January 21, 2025 alone,” Kanyi said.
Similarly, in reaction to the advertisement, the Insurance Regulatory Authority (IRA) chastised SK Macharia while assuring the public that the company was still active.
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“All insurance policies issued by Directline Assurance Company Limited remain in full force and effect,” noted the Insurance Regulator Authority.
“Policyholders can rest assured that their contracts remain valid, and the insurer is fully liable for any claims arising therefrom.”
Meanwhile, on December 17, last year, SK Macharia wrote to IRA, demanding that four Assurance Company stockholders be removed immediately from the CR12.
Macharia, through his lawyer Danstan Omari, warned in a letter to IRA Chief Manager Godfrey Kiptum that if the regulator did not remove the names of the four shareholders from the CR12, he would take legal action.
Royal Media Ordered To Halt Advertisements Over Active Court Case
