Kenyans, stakeholders, and potential investors have been cautioned about an emerging fraudulent scheme allegedly involving the sale of Directline Assurance shares.
This follows reports that Royal Credit Limited, led by Dr. S.K. Macharia, had supposedly put up 90 per cent of Directline Assurance shares for sale.
However, in an official statement, Royal Credit clarified that Directline Assurance is a private company and that none of its shares are up for sale, contrary to the circulating claims.
In a letter dated July 18 and addressed to the Insurance Regulatory Authority (IRA), Royal Credit expressed shock over a public notice falsely advertising the sale of shares in Directline, allegedly priced at Ksh81 each.
“We have seen an attached ad, purporting to sell 90 per cent shares of Directline Assurance Company Limited (DAC) and is signed by purported directors on behalf of purported shareholders,” read part of the Royal Credit Limited letter.
The company denied any involvement in the alleged sale, revealing that no approval had been given to sell any shares, and warned that the advert was issued without the knowledge of the actual shareholders.
Royal Credit described the notice as part of a fraudulent scheme aimed at misleading the public. It urged Kenyans not to fall for the false claims.
''The public is advised to ignore the ad and not to be trapped in a corrupt manipulation by those involved as they stand to lose their money for no reason,” the notice continued.
The firm asked the IRA to clarify whether it had received any falsified documents related to the presumed share transaction. It also questioned the legality of those behind the sale notice.
“IRA is requested to confirm whether it has issued written authority to those purporting to sell the shares of DAC,” the statement added.
Potential investors, stakeholders, and Kenyans have been asked to perform due diligence before engaging in any purchase to avoid the risk of losing money.
The company has been undergoing control struggles over the years.
