Nairobi, July 19, 2025 – A fraudulent public notice claiming that 90 per cent of Directline Assurance shares are up for sale has prompted an official rebuttal from Royal Credit Limited, chaired by Royal Media Services Director Dr. S.K. Macharia.
In a statement dated July 18 and addressed to the Insurance Regulatory Authority (IRA), Royal Credit dismissed the claims as a deliberate scam targeting unsuspecting Kenyans and investors. The company emphasized that Directline Assurance Company is a privately held entity, and no portion of its shareholding is on the market.
Fraud Alert: The Fake Share Sale Notice
The public notice circulating online and in certain financial circles falsely claims that Directline shares are being sold at Ksh81 each, with forged signatures from alleged directors and shareholders.
“We have seen an attached ad purporting to sell 90 per cent shares of Directline Assurance Company Limited (DAC), and it is signed by purported directors on behalf of purported shareholders,” Royal Credit stated in its letter to the IRA.
According to Royal Credit, this notice was issued without any authorization from the legitimate owners or approval from relevant authorities.
Royal Credit Responds Firmly
Royal Credit condemned the advert as a fraudulent scheme designed to mislead potential investors and possibly swindle money from the public. The statement made clear that:
- No approval has been given to sell any Directline shares
- The advert was published without consent or involvement of actual shareholders
- The company has not engaged any party to market or facilitate such a transaction
“The public is advised to ignore the ad and not be trapped in a corrupt manipulation by those involved, as they stand to lose their money for no reason,” the statement warned.
IRA Involvement and Legal Clarification
The company also called upon the IRA to investigate the origin of the fake notice and confirm whether any falsified documents were received.
“IRA is requested to confirm whether it has issued written authority to those purporting to sell the shares of DAC,” Royal Credit’s letter stated.
At the time of publication, the IRA had not issued any official comment, but the matter is reportedly under urgent review.
Investor Caution Urged
Potential buyers, insurance stakeholders, and Kenyans have been strongly advised to conduct due diligence and verify any claims related to Directline’s ownership through official channels only. Royal Credit emphasized that falling for such scams could lead to significant financial loss.
The statement comes at a time when Directline Assurance has faced internal control struggles and heightened scrutiny from industry observers. However, no legitimate plan for divestment or restructuring has been announced publicly.
Conclusion: Stay Vigilant
Royal Credit’s swift dismissal of the alleged share sale underlines the growing threat of financial misinformation in Kenya’s investment landscape. As corporate fraud schemes evolve, the public is reminded to verify all transactions and consult licensed institutions before engaging in any financial commitments.
