On Wednesday, November 6, the High Court gave a reprieve to Royal Media Services owner SK Macharia after giving orders barring the Directorate of Criminal Investigation (DCI) officers from conducting any search on the premises of the media mogul.
This came after Macharia moved to court on October 28 this year, seeking an intervention to stop the DCI from searching his premises in a case between him and the Insurance Regulatory Authority (IRA), over the dissolution of Directline Insurance.
The court, via the presiding magistrate Dolphina Alego, directed that the orders to bar the detectives from searching his premises be extended to March 3, next year, dealing a blow to the detectives working on the case.
"We will return on March 10th, 2025 for the hearing of the application; the status quo will remain," Alego ruled.
The court had initially issued temporary orders barring DCI from searching his premises until today when the case was heard.
In his petition, Macharia had argued that the court did not give him fair time to express himself in an order issued to the detectives warranting a search of his premises.
Macharia is involved in a protracted legal dispute with his grandchild over the management of Directline Insurance.
Through his lawyer Danstan Omari, the mogul argued that he acted right in dissolving the company since he is the main shareholder, legally recognised and therefore nothing was preventing him from making such a decision.
Macharia stressed that the grandchild is not a shareholder and therefore cannot speak on behalf of shareholders of Directline Company Limited.
The case attracted the attention of the Insurance Regulatory Authority since the company controlled over 70 per cent of the insurance industry in Kenya. This meant that its dissolution would deal a blow to the motor insurance industry in Kenya.
The DCI had moved to court seeking to repossess three vehicles owned by the media baron. Additionally, the agency wanted to search for documents at RMS that would help in the case.
Problems started when Directline shut its operations on September 10, 2024, halting all insurance operations. In a statement, the company communicated that the shareholders of the company had resolved to cease issuing insurance policies.
Further, the Association of Kenya Insurance Companies (AKI) was duly instructed to cease issuing insurance certificates or stickers in the name of Directline Assurance Company Limited from September 10.