NAIROBI, Kenya, June 11 – The Insurance Regulatory Authority (IRA) has announced the suspension of the closure of Directline Assurance Company Limited, reinstating its operations just hours after an attempted shutdown. Directline Assurance Remains Operational
Regulator’s Statement
IRA CEO Godfrey Kiptum confirmed that Directline Assurance remains fully operational and licensed, dismissing any actions suggesting its closure as legally ineffective.
“The purported actions are null and devoid of any legal effect and as such the insurer continues in full operation as licensed and approved by the Authority,” stated Kiptum. “The purported transfer of the assets of the insurer to any third party is therefore null and void ab initio.”
Background
This announcement follows an earlier declaration by Royal Credit Limited, represented by SK Macharia—owner of Citizen TV and Radio Citizen—asserting that Directline Assurance would cease operations, which would have resulted in significant job losses.
Continued Responsibilities
Kiptum emphasized that as Directline Assurance remains registered, it is still responsible for any claims. He clarified the IRA’s exclusive statutory authority to approve, suspend, or cancel the operations of any insurance company in Kenya, a duty that cannot be overridden by any unauthorized party.
Regulatory Measures
“The insurer has been placed under heightened surveillance by the Authority and the Authority will take necessary steps as may be appropriate, pursuant to the provisions of the Insurance Act, CAP 487 Laws of Kenya, to ensure sustainability of the insurer and protection of insurance policyholders’ interests,” Kiptum added. Directline Assurance Remains Operational
Conclusion
Despite the recent turmoil, Directline Assurance continues its operations under close monitoring by the IRA to ensure compliance with regulatory standards and the protection of policyholders’ interests.
