Court pushes Directline parties to streamline case over ownership dispute

The move is aimed at shifting the case toward the substantive issues of directorship and shareholding.

During a mention on Tuesday of a contempt of court application against Royal Credit Limited chairperson Dr S.K. Macharia, Justice Francis Gikonyo observed that the growing number of applications was unnecessarily delaying a matter that should have already been concluded.

He urged the parties to streamline the proceedings to allow the court to focus on the core dispute.

Royal Credit Limited chairperson Dr S.K. Macharia arrived at the Milimani Law Courts at 9am on Tuesday for the mention of the contempt application filed against him by the plaintiff.

During the proceedings, Dr Macharia, who is named as the defendant, raised a preliminary objection to the hearing of the contempt application, arguing that the court lacks jurisdiction to handle the matter.

However, Justice Gikonyo directed the parties to find a practical way of narrowing down the numerous applications on record and instead concentrate on the main questions of shareholding and directorship.

“Find a way out, a pragmatic approach, so that you get fairness and a speedy hearing,” said Justice Francis Gikonyo.

Justice Gikonyo noted that the dispute had become increasingly adversarial, with both majority and minority shareholders filing multiple applications and preliminary objections, a trend he said was slowing down a case that should have moved faster.

“If this matter was before me, this Directline issue would have gone a long time ago,” said Justice Francis Gikonyo.

Defense lawyer Julius Orenge argued that many of the applications touching on shareholding and directorship had been filed by the plaintiff.

“You note from the court records touching on shareholding and directorship that it is the plaintiff who keeps on filing applications and objections,” said Julius Orenge, defense lawyer.

Both sides agreed to comply with the court’s directions and hold consultations aimed at narrowing down the issues for determination.

“Parties through their counsel will have a written consent by you so that there is no avenue to say they did not participate,” said Julius Orenge, defense lawyer.

The case has attracted significant public attention, as Directline Assurance is among Kenya’s largest insurers of public service vehicles. Tuesday’s court appearance specifically addressed the contempt of court application against Dr Macharia.

“My client has sworn an affidavit showing cause as directed by the court, even knowing fully that procedures were flouted from the beginning,” said Kipkemoi Sang, defense lawyer.

The court is scheduled to deliver its ruling on the defendants’ preliminary applications on February 12, 2026.