The High Court has blocked businessman Samuel Kamau (SK) Macharia from broadcasting information about the shareholding and directorship of insurer, Directline Assurance Company Ltd.
The insurance company had moved to court seeking orders to stop the businessman from running damaging campaigns on Royal Media Services platforms, which he owns.
High Court Judge Janet Mulwa further issued orders stopping Mr Macharia from disseminating information on the business, management, operations, and affairs of the company, pending the hearing of the case on September 25.
The court heard that the businessman had embarked on a media campaign through broadcasts and publications, which had caused the underwriter to suffer financial loss and damage to its business reputation.
According to documents filed in court, the broadcasts and publications have caused unnecessary panic and confusion in the insurance industry and among policyholders.
“That in the interim, prayer numbers 3 and 4 are granted. That due to the upcoming court recess effective, the said temporary injunctive orders issued against the Defendants shall remain in force up to the 25/9/2025 when an inter-partes hearing is scheduled,” said the judge.
In an affidavit, Kenneth Maina, an official of Directline, said the information being broadcast alleged that the shareholders of the insurance company had resolved to cease issuance of insurance policies and that the firm had terminated its insurance business with immediate effect.
“Unless restrained by this court, the 1st defendant (Dr Macharia) will continue to broadcast or publish, and the 2nd, 3rd, and 4th defendants will continue to cause to be broadcast and published damaging content that is false and malicious to the plaintiff (Directline),” Mr Maina said.
He said damages cannot sufficiently compensate the company for the loss of its business reputation and public confidence, which will result from the continuation of the offending publications.
Other parties named in the case are RMS and Royal Credit Limited, which Mr Maina said is the majority shareholder of the insurance firm.
He said there was an ongoing dispute concerning the control and ownership of the company that had led to the disruption of its operations.
The ownership dispute of the company was referred to arbitration, resulting in an award published on May 11, 2022. An application for recognition and enforcement of the award, as well as for setting it aside, is pending before the High Court.
Directline is the biggest insurer of commercial PSVs, having received over half of the industry’s premium by covering matatus and long-distance buses. The PSV segment covers motorists and passengers from death, injuries, and vehicle damage resulting from accidents.
