NAIROBI, Kenya, June 11 – The Insurance Regulatory Authority (IRA) has suspended the closure of Directline Assurance Company Limited, a few hours after the closure.
IRA CEO Godfrey Kiptum said that the insurer is still operational.
“The purported actions are null and devoid of any legal effect and as such the insurer continues in full operation as licensed and approved by the Authority,” Kiptum said.
“The purported transfer of the assets of the insurer to any third party is therefore null and void ab initio,” he added.
The regulator’s response came after Royal Credit Limited, through SK Macharia, who owns Citizen TV and Radio Citizen, announced that the insurer would cease to operate, rendering numerous jobs vacant.
Since the insurer is still registered, Kiptum added that it is liable for any claims arising therefrom.
“The Authority has the sole statutory mandate to approve, suspend or cancel the operations of any insurance company in Kenya and this duty cannot be usurped by any unauthorized party.”
“The insurer has been placed under heightened surveillance by the Authority and the Authority will take necessary steps as may be appropriate, pursuant to the provisions of the Insurance Act, CAP 487 Laws of Kenya, to ensure sustainability of the insurer and protection of insurance policyholders’ interests.”
By John Muchiri
