According to the report shared by Business daily, a major change is taking place in Kenya’s PSV insurance sector, with Amaco, a company linked to President William Ruto, quickly gaining ground and challenging the dominance of Directline Assurance, which is owned by media tycoon SK Macharia.
This shift is not just about business; it also reflects deeper political tensions and economic strategies playing out in the country’s insurance industry.
Recent figures from the Insurance Regulatory Authority show that Amaco’s share of the PSV insurance market jumped from 14.95% to 37.51% in just one year.
This is a massive leap, especially in a sector that has been dominated by Directline for years.
During the same time, Directline’s market share dropped greatly from 61.56% to 47.97%. The reasons behind this drop include internal disagreements among shareholders and regulatory hurdles that have been piling up against the company.
Amaco has seen its PSV premiums grow by a huge KSh 1.15 billion, now standing at KSh 1.98 billion, which is a 139.7% increase. On the other hand, Directline saw a 25.4% drop, losing KSh 860 million and bringing its PSV premiums down to KSh 2.54 billion.
These numbers show how fast Amaco is moving forward and how much Directline is struggling to hold its ground.
There’s also a political side to this rivalry. SK Macharia has been openly supporting opposition leader Raila Odinga and has not seen eye to eye with Ruto’s government.
The timing of Directline’s problems, including legal battles and issues with the Insurance Regulatory Authority, raises questions about whether politics might be influencing the business environment.
As Directline weakens, Amaco, which is partly owned by Ruto’s family and allies, is rising and even winning lucrative deals, like a KSh 190 million contract with the Nairobi County Government to insure vehicles and motorcycles.
This shift in the PSV insurance market could have big effects. Some experts say we might see more takeovers and mergers as smaller players struggle to keep up.
With Amaco becoming more powerful, there are also concerns about what this means for insurance pricing, customer service, and whether competition will remain fair.
Regulators are being called upon to monitor the situation closely and make sure that consumers are protected.
Directline has a lot to fix internally if it hopes to regain its lost market share. At the same time, Amaco is pushing hard to become the top choice for matatu operators across the country. Whether this trend continues or balances out will depend on how both companies handle their next moves.
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