A Malindi Court has ordered Directors of Direct Line Insurance Company to physically appear in court for oral examination after the company failed to liquidate outstanding decretal balance of KSh. 2,259,825 to a woman who was seriously injured in an accident in 2016.
The company associated to the Billionaire SK Macharia family has failed to honour court orders to pay Hellen Waiyaki since the accident occurred.
She moved to court after Direct Line Insurance Company failed to honour the compensation after an accident involving Tahir Sheikh Said Transporters Ltd (TSS Bus Company) in which she was a passenger 10 years ago despite concerted efforts through the court and auctioneers to claim the compensation.
Malindi Senior Principal Magistrate Joy Wesonga ruled that all efforts to execute the decree against the defendant have now become futile since.
“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,” said the judge.
He said considering the irregularity and inability the defendant has exhibited in the suit, it is imperative that the company’s veil be lifted so that the company shareholders Samuel Kamau Macharia, Purity Gathoni Macharia, Dan Macharia, Dan Karobia, Ken Martin Mwenda, Kenneth Maina Dura and Robinson Maina Mwangi be held personally liable for payment of the decretal sum.
The Magistrate ordered the directors of the company to personally attend the court for oral examination regarding the property, assets debts, and current means of their company to liquidate the outstanding decretal balance of KSh 2,259,825 on July 31 2026.
“The said Directors shall bring and produce during the examination all of the Defendant company’s Audited Books of Accounts, Bank Statements, and Asset Registers covering the last two financial years to clarify the company’s financial capacity and commercial operations within the Republic of Kenya,” ruled the magistrate.
The Court heard that the suit arose after Waiyaki was involved in a road traffic accident that occurred on October, 6 2016, while she was traveling in motor vehicle registration number KBZ 475 S.
“By a judgment dated 28th November, 2022 (delivered on 31st January, 2023), the lower court found 100% liability against the insured and awarded the Applicant Kshs. 2,563,781/= for general damages, court costs, and interest,” said the ruling in part.
The applicant sustained horrific injuries multiple fractures to her left arm which have fallen into a degenerative mode, leaving her in desperate need of reconstructive surgery to avoid permanent loss of the limb.
The Court heard that the insurer in the primary suit failed or refused to liquidate the sum, compelling the applicant to file the instant declaratory suit against the Respondent Company.
“This suit was heard on its merits via formal proof, and judgment was delivered in Favor of the Applicant on 21st March, 2025. What followed was a masterclass in execution evasion by the Respondent. Warrants of attachment of movable property were first issued on 8th April, 2025, but were frustrated by temporary stay orders that were later vacated. Warrants were reissued on 21st January, 2026, to M/S Much Williams Investment Auctioneers for a balance then standing at Kshs. 2,659,825/,” the court heard.
The Magistrate said the respondent barred the auctioneers from accessing their offices at Hazina Towers in Nairobi, forcing the auctioneers to extract a court order for police assistance.
Upon gaining forceful entry she said the auctioneers discovered that the Respondent had cleared out and hidden almost all its attachable assets to evade multiple execution processes from various creditors.
“Following a brief proclamation, the Respondent orchestrated a token payment of Kshs. 100,000/= through a third party, Joshua Ndirangu Macharia, followed by a subsequent paltry payment of Kshs. 300,000/= on 24th March, 2026. This left an outstanding balance of Kshs. 2,259,825/=, with absolutely no commitment toward liquidation,” the Court heard.
The Auctioneers reportedly returned the warrants to the court on May 4 2026 as unexecuted and noted total frustration and systematic obstruction by the respondent.
In her supporting affidavit filed through her lawyer George Wakahiu Waiyaki disclosed that she was a passenger in a motor vehicle KBZ 475 S which was carelessly driven and overturned causing an accident and she sustained grave bodily injuries.
She said her lawyer served notice dated December, 9 2016 to Direct Line Insurance Company and their insured Tahir Sheikh Said Transporters (TSS.) Ltd the requisite demand notice of intention to file which was at least 14 days before the filing of the primary suit.
“I filed suit via Malindi CM’s Court, Civil Case Number 119 of 2019 (Hellen Muthoni Waiyaki vs Tahir Sheikh Said Transporters (TSS) LTD) after the defendant and their insured failed to bear their responsibility of compensating me for damage sustained in the accident,” said her affidavit in part.
