Africa Merchant Assurance Company (Amaco), connected to President William Ruto through family shareholdings, has more than doubled its presence in the public service vehicle (PSV) insurance market, reaching a 37.5% market share in 2025. This rise positions Amaco as a strong challenger to Directline Assurance, owned by media mogul Samuel Kamau (SK) Macharia, whose market share dropped to 48% from a previous 64.95%.
Amaco’s rapid growth in PSV insurance was fueled by a 2.6 times increase in gross written premiums, hitting Sh379.91 million, compared to Sh146.37 million in the prior period. The insurer reported a turnaround in profitability, posting an underwriting profit of Sh90.62 million from commercial PSV policies after a loss of Sh191.56 million the previous quarter. This financial improvement came as Amaco capitalized on the collapse of Invesco Assurance, which had held an 8.15% PSV insurance market share before being placed under statutory management in 2023 due to unpaid claims.
Amaco’s link to President William Ruto stems from shareholdings by his family through Yegen Farms Limited. First Lady Rachel Ruto and daughter Charlene Ruto collectively own 190,000 shares (15.83% stake) as of October 2024, an increase from 50,000 shares in mid-2022. Additional stakes are held by his associates, such as Charles Tela Alusala and Silas Kibet Simwato.
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Meanwhile, Directline Assurance insurance market share dropped sharply to 48%, and gross written premiums declined by 1.9% to Sh818.12 million. The company has been embroiled in shareholder disputes, particularly involving SK Macharia, who claims majority ownership through Royal Credit Limited. Macharia has accused the company’s management of illegally altering the share registry, reducing his stake to 10% according to the Insurance Regulatory Authority (IRA). A 2019 attempt by Macharia to seize control resulted in IRA intervention, which declared his actions unlawful.
Directline’s struggles extended to regulatory battles. In 2024, Macharia announced the company’s closure due to frozen bank accounts and alleged mismanagement of Sh7 billion, claims refuted by the IRA, which confirmed that Directline remained fully registered and that its policies were valid. Macharia’s warning adverts against buying Directline insurance triggered a lawsuit from the company for financial damages and causing market unrest.
The insurer’s instability was worsened by a succession dispute following the 2018 death of John Gichia, Macharia’s son, who was a major shareholder and executive director. Macharia sought to manage his grandson Adam Kamau Macharia’s inheritance, including Directline shares, but faced legal challenges from Adam and other family members.
Additionally, the Matatu Owners Association has voiced concern over unpaid claims exceeding Sh17 billion and the possible disruption to the PSV sector, which relies heavily on Directline’s services.
Amaco has also faced its share of regulatory scrutiny. It was accused of hiding assets to avoid a Sh19 million debt in 2022 and has faced liquidation petitions over unpaid claims and debts in previous years.
Amaco’s market share rise has however sparked discussions about political influence, with some reports and social media posts alleging that Amaco has benefited from government contracts tied to President Ruto’s administration. These include deals related to the Social Health Insurance Fund (SHIF) and motor vehicle tax collection.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.