Directline Assurance is facing mounting pressure from creditor-led liquidation petitions after recording a negative shareholders’ equity position of KSh2.6 billion and a half-year loss of KSh548.21 million, even as it retained its lead in Kenya’s public service vehicle (PSV) insurance market. The insurer’s financial difficulties come as nine creditors seek its liquidation at the High Court in Malindi, with the petition scheduled for hearing on November 23, 2026.
The latest figures from the Insurance Regulatory Authority (IRA) show that Directline’s liabilities stood at KSh9.68 billion against assets of KSh7.08 billion at the end of June 2026. The resulting deficit highlights the pressure on the company’s balance sheet, while the KSh548.21 million loss for the first six months of the year follows a full-year loss of KSh929.8 million in 2025.
Despite the losses, Directline maintained a significant position in the PSV insurance market. Its market share rose to 43.41 per cent in the first half of 2026, up from 38.40 per cent in the corresponding period a year earlier. Gross premiums from PSV insurance increased by 18.9 per cent to KSh1.26 billion, accounting for most of the company’s KSh1.58 billion in gross direct premiums.
The liquidation petition adds to a series of creditor applications filed against the insurer in courts in Malindi, Garissa and Garsen. The petitions seek court orders to wind up the company, but they do not amount to a final liquidation order. The company’s future will depend on the court proceedings and any applicable regulatory decisions.
Directline has also faced a prolonged ownership dispute involving businessman S.K. Macharia and other shareholders. In 2024, the Insurance Regulatory Authority rejected an announced shutdown and maintained that existing policies remained valid, placing the insurer under closer supervision amid concerns about its operations.
The uncertainty carries wider implications for Kenya’s transport sector. Directline is a major provider of insurance for matatus and buses, whose operators require valid cover to operate legally. Any disruption to its operations could force vehicle owners to seek alternative insurers and create pressure across the PSV insurance market.
With the next court hearing approaching, creditors, policyholders and PSV operators will be watching for developments that clarify the insurer’s financial position, regulatory standing and ability to continue serving the transport industry.
