Ruto-Linked Amaco Overtakes Directline to Dominate Kenya’s Matatu Insurance Market

Africa Merchant Assurance Company (Amaco), a firm with significant ties to President William Ruto’s family, has emerged as Kenya’s largest public service vehicle insurer, dethroning media mogul Samuel Kamau Macharia’s Directline Assurance from a position it has held for years.

The dramatic shift in Kenya’s multi-billion shilling PSV insurance market saw Amaco’s market share surge to 54.71 percent by March 2025, up from 37.51 percent in December, according to data from the Insurance Regulatory Authority. Meanwhile, Directline’s dominance has crumbled, with its market share falling from 47.97 percent to 35.67 percent over the same period.

This represents the first time Directline has surrendered its leadership position in the lucrative matatu insurance sector, marking a significant victory for President Ruto’s business interests. The President’s family holds a substantial stake in Amaco through Yegen Farms Limited, where First Lady Rachel Ruto and daughter Charlene Ruto are listed as shareholders, owning 190,000 shares or 15.83 percent of the company as of October 2024.

The family’s investment in Amaco has grown substantially, with their current shareholding nearly four times the 50,000 shares they held in July 2022. Additionally, Charles Tela Alusala, an accountant who manages the family’s business affairs, holds 130,000 shares representing 10.83 percent of the company.

President Ruto’s close associate Silas Kibet Simwato, who chairs the Digital Health Agency, also has significant interests in the insurer, directly owning 40,600 shares while his family controls an additional 240,000 shares through two companies, Vomorono Limited and Joubert & Borman Ltd.

The meteoric rise of Amaco has been reflected in its financial performance, with quarterly premiums jumping 98.9 percent to reach Sh755.61 million by March 2025, compared to Sh379.91 million in the same quarter the previous year. Conversely, Directline has experienced a sharp decline, with its commercial PSV premiums dropping 39.8 percent to Sh492.64 million from Sh818.12 million.

Industry analysts attribute Directline’s market loss to ongoing shareholder disputes that have plagued the company and created uncertainty among policyholders. The situation reached a crisis point in March 2024 when Macharia announced that all workers were fired and insurance policies were invalid, prompting regulatory intervention and court action to force him to retract the statements.

The PSV insurance market shake-up has also been influenced by the near-collapse of Invesco Assurance, another major player that slipped into statutory management in 2024, effectively barring it from underwriting new policies. Invesco had previously held 10.79 percent of the market before its downfall.

A new competitor has also emerged in Definite Assurance Company Limited, owned by Quiver Lounge & Grill’s Peter Mbugua and Sportpesa’s Ronald Karauri. Licensed in December 2024, Definite has already captured 2.35 percent of the market, becoming the fourth-largest matatu insurer after GA Insurance.

The political undertones of this business rivalry cannot be ignored. Ruto and Macharia have historically found themselves on opposite sides of Kenya’s political divide, with the media mogul consistently backing opposition leader Raila Odinga in presidential contests, including the 2022 election where Odinga unsuccessfully challenged Ruto.

This market transformation underscores the challenges facing Kenya’s motor vehicle insurance sector, which the IRA describes as problematic at the underwriting level. The PSV insurance segment, exclusively covering vehicles like matatus, represents a crucial component of the country’s transport ecosystem, making control of this market particularly significant for both business and political influence.

As Amaco consolidates its newfound dominance and Directline grapples with internal turmoil, the landscape of Kenya’s PSV insurance market appears to have permanently shifted, reflecting broader changes in the country’s business and political dynamics under President Ruto’s administration.​​​​​​​​​​​​​​​​