By Ben Okweingoti.
A court in Malindi has ordered the directors of Direct Line Insurance Company to personally appear before it for oral examination after the insurer allegedly failed to settle a court-awarded compensation of Sh2,259,825 owed to a woman who sustained life-changing injuries in a road accident nearly a decade ago.
In a ruling delivered by Malindi Senior Principal Magistrate Joy Wesonga, the court directed the company's directors to appear on July 31, 2026, and explain the firm's financial position and ability to settle the outstanding decretal amount.
The directors have also been ordered to produce the company's audited financial statements, bank statements, and asset registers for the last two financial years to shed light on its financial capacity and commercial operations in Kenya.
The case involves Hellen Muthoni Waiyaki, who was seriously injured on October 6, 2016, while travelling as a passenger in motor vehicle KBZ 475S, owned by Tahir Sheikh Said Transporters (TSS) Ltd.
Despite securing a favourable judgment, Waiyaki has been unable to receive the compensation after years of unsuccessful attempts to enforce the decree against the insurer.
In the ruling, the magistrate observed that all efforts to execute the court decree had been frustrated, noting that the insurer had allegedly resorted to denying members of the public access to its offices.
"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 on its behalf, which is highly irregular. The legality of its operations and continued existence is therefore in question," the magistrate ruled.
The court further stated that, given the company's alleged inability to satisfy the decree, there was justification to lift the corporate veil and summon its directors for examination.
Those ordered to appear include Samuel Kamau Macharia, Purity Gathoni Macharia, Dan Macharia, Dan Karobia, Ken Martin Mwenda, Kenneth Maina Dura, and Robinson Maina Mwangi.
According to court records, Waiyaki suffered multiple fractures to her left arm during the accident, injuries that have since deteriorated and now require reconstructive surgery to prevent permanent loss of the limb.
The trial court found the insured party 100 per cent liable and, in a judgment dated November 28, 2022 and delivered on January 31, 2023, awarded Waiyaki Sh2,563,781 in general damages, costs, and interest.
After the insurer allegedly failed to honour the award, Waiyaki filed a declaratory suit against Direct Line Insurance. Judgment in that case was entered in her favour on March 21, 2025.
However, the court heard that attempts to execute the decree were repeatedly frustrated.
Warrants of attachment were first issued in April 2025 but were temporarily halted by stay orders before being reissued in January 2026.
Auctioneers appointed to recover the money reportedly encountered resistance after being denied access to the company's offices at Hazina Towers in Nairobi, forcing them to obtain police assistance.
Upon gaining entry, the auctioneers informed the court that most attachable assets had allegedly been removed, making execution impossible.
The court also heard that the insurer later made partial payments of Sh100,000 through a third party, Joshua Ndirangu Macharia, followed by another Sh300,000 in March 2026, leaving an outstanding balance of Sh2,259,825.
The auctioneers eventually returned the warrants to court unexecuted in May 2026, citing systematic obstruction and frustration of the execution process.
In her affidavit filed through advocate George Wakahiu, Waiyaki stated that she had served the statutory demand notice on both the insurer and Tahir Sheikh Said Transporters Ltd before filing Malindi CM Civil Case No. 119 of 2019, after efforts to secure compensation out of court failed.
The court will now hear from the company's directors on July 31 as it seeks to establish the insurer's financial position and determine the next course of action in enforcing the long-standing judgment.
