Amaco loses grip on matatu insurance market as Directline bounces back
Business
By
Macharia Kamau
| Jul 14, 2026
Matatu owners are increasingly ditching African Merchant Assurance (Amaco), eroding the insurer's once dominant position in insuring Kenya's public service vehicles (PSVs).
Amaco, which is partly owned by President William Ruto's family, saw its market share in the PSV segment drop to 21 per cent from 44.61 per cent posted in December 2025, according to industry data by the Insurance Regulatory Authority (IRA). The firm had in recent years aggressively expanded its client-base in the PSV sector, controlling 54.71 per cent of the market in the quarter to March 2025.
Directline Assurance grew its market share to 62 per cent over the quarter to March this year, a jump from a share of 40.44 per cent in December 2025. Directline, suffering from shareholder wrangles, had seen its share of the PSV market drop to 35 per cent over the first quarter of 2025.
Directline appears to have shrugged off shareholder wrangles that it has had to grapple with in the recent past, when one of its owners in 2024 warned the public against taking cover with the insurance company as he instituted changes in the management.
A high court ruling in May this year confirmed that businessman SK Macharia, who owns the underwriter through Royal Credit and had in 2024 moved to make major changes, has a minority interest in the firm (9.66 per cent), while rival investors have a combined 90.34 per cent stake. This has meant that Macharia cannot unilaterally institute changes at the company.
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The IRA quarterly report shows that motor insurance, alongside medical insurance, remains the largest driver for general business insurance, accounting for 66.2 per cent of all gross premium income in the general business category.
Motor insurance, however, continued to account for a significant amount of industry losses. The combined motor classes, including PSV, other commercial and private, contributed to 40.5 per cent of total claims incurred across all general insurance, despite only contributing 23.2 per cent of total premiums over the quarter.
Motor segments recorded a combined underwriting ratio above 100 per cent (118.5 per cent for private motor and 110.5 per cent for commercial motor), meaning insurers paid more in claims, management expenses and commissions than they earned in net premiums.
IRA data also shows that overall, the sector grew 19.9 per cent in total gross written premiums to hit Sh155.33 billion and a 22.2 per cent growth in total assets to make Sh1.61 trillion. This growth was driven by the long-term life insurance segment, which grew by 36.3 per cent due to high-performing investment products and an influx of Tier II NSSF contributions under deposit administration.
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Matatu owners are increasingly ditching African Merchant Assurance (Amaco), eroding the insurer's once dominant position in insuring Kenya's public service vehicles.MOST READ
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