Directline Assurance Announces Shutdown, Triggering Layoffs.

  Directline Assurance, a prominent motor vehicle insurer in Kenya, has announced the closure of its operations.

In a brief statement on Monday by Dr SK Macharia, Chairperson of Royal Credit Limited, which owns the insurance company, this decision was prompted by the Insurance Regulatory Authority (IRA)'s decision to shut down all Directline bank accounts.

This closure has led to the termination of all Directline employees, the dissolution of its board and the suspension of all insurance services.

"The board of directors of Directline has been dissolved and all the assets taken over by Royal Credit Ltd. All employees have been dismissed, and Directline will no longer issue insurance services," Macharia said.

Directline joined the Kenyan market in November 2005 as a motor vehicle insurance company.

The company provided insurance coverage for Public Service Vehicles (PSV). It offered comprehensive and third-party insurance policies.

The shutdown is expected to impact Kenya’s insurance significantly as policyholders and stakeholders adjust to the exit of a major player.

Kenyans are advised to look for alternative motor insurance that provides better or equivalent services to Directline insurance.