A Malindi court has ordered the directors of Direct Line Insurance Company to personally appear before the court for oral examination after the insurer allegedly failed to settle an outstanding compensation award of KSh2,259,825 owed to an accident victim.
The order follows years of legal battles by Hellen Waiyaki, who sustained serious injuries in a road accident in 2016 involving a bus operated by Tahir Sheikh Said Transporters Ltd (TSS). Despite obtaining favorable court judgments and pursuing various execution measures, she has yet to receive the full compensation awarded to her.
Malindi Senior Principal Magistrate Joy Wesonga ruled that repeated attempts to execute the decree against the insurance company had failed, raising questions about the firm’s ability to satisfy its legal obligations.
“It is clear that the defendant company is unable to pay the decretal sum and has resorted to asking random people to make random payments for them which is highly irregular and hence the legality of their operations and their continued existence is in question,” the court ruled.
The magistrate further directed that the company’s directors, including businessman Samuel Kamau Macharia (SK Macharia), Purity Gathoni Macharia, Dan Macharia, Dan Karobia, Ken Martin Mwenda, Kenneth Maina Dura and Robinson Maina Mwangi, appear in court on July 31, 2026.
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According to the ruling, the directors must provide details regarding the company’s assets, debts, financial position and ability to settle the outstanding balance. They have also been ordered to produce audited financial statements, bank records and asset registers covering the last two financial years.
The dispute stems from a road accident on October 6, 2016, when Waiyaki was traveling in motor vehicle registration number KBZ 475S. She suffered multiple fractures to her left arm, injuries that the court heard have since deteriorated and may require reconstructive surgery.
In a judgment delivered in January 2023, the court found the insured party fully liable and awarded Waiyaki KSh2,563,781 in damages, costs and interest.
After the insurer allegedly failed to settle the award, Waiyaki filed a declaratory suit against Direct Line Insurance and secured another judgment in March 2025. Subsequent efforts by auctioneers to recover the money reportedly faced numerous obstacles.
Court documents indicate that auctioneers tasked with attaching company assets were initially blocked from accessing Direct Line Insurance offices at Hazina Towers in Nairobi. After obtaining police assistance, they reportedly found most attachable assets had been removed.
The court also heard that only partial payments totaling KSh400,000 were made through a third party, leaving an outstanding balance of KSh2,259,825.
Magistrate Wesonga noted that the company’s conduct suggested systematic efforts to frustrate the execution process and ordered the directors to explain the firm’s financial status under oath.
The case is expected to come up on July 31, 2026, when the directors will appear before the court for examination regarding the company’s ability to settle the compensation award.
