An insurer backed by Quiver Lounge and Grill owner Peter Mbugua and SportPesa CEO Ronald Karauri has captured a quarter of Kenya’s matatu insurance market barely 18 months after entering the business, intensifying competition in a segment dominated by established players.
Latest Insurance Regulatory Authority (IRA) disclosures show Definite Assurance’s share of commercial public service vehicle (PSV) insurance market jumped to 25.03 percent in June 2026, from 4.74 percent a year earlier.
Definite’s more than fivefold expansion in its market share came in the period premiums received from matatu insurance jumped to Sh727.05 million from Sh130.79 million in the period industry premiums hit Sh2.91 billion in six months from Sh2.76 billion.
The insurer’s growth coincided with a decline in the fortunes of President William Ruto-linked Africa Merchant Assurance Company (Amaco), with its stake declining to 26.79 percent from 50.75 percent over the same period.
The latest figures challenges the balance of power in matatu insurance, which has for long been concentrated in Directline Assurance and Amaco.
Amaco emerged as the market leader in early 2025 as Directline Assurance, which had dominated the matatu insurance business for years, was embroiled in a shareholder dispute over businessman Samuel Kamau Macharia’s stake. In May this year, the High Court confirmed Mr Macharia as a minority shareholder.
The latest performance places Definite within striking distance of Amaco. Directline, whose market share rose to 43.41 percent from 38.4 percent, retained its lead in the segment that provides cover for matatus and other commercial passenger vehicles against third-party liabilities arising from accidents.
The latest figures underline the rapid reshaping of a lucrative but risky insurance business in which investors are competing for premium income despite a history of underwriting losses, fraudulent claims and insurer failures.
Definite’s rising market share has coincided with Mr Mbugua and Mr Karauri settling their differences over ownership and control, which emerged shortly after the insurer received its licence.
Definite, which received its operating licence in December 2024 and began underwriting policies in January 2025, has expanded its market share from 2.35 percent in March last year to 7.71 percent in September and 10.28 percent in December before reaching 25.03 percent in June this year.
Mr Karauri and Mr Mbugua were previously embroiled in disagreements over shareholding and control shortly after the insurer received its licence. it is not clear if they settled the disagreements.
Mr Mbugua, who owns Quiver Lounge and Grill, had accused his partners of sidelining him from key decisions and sought to exit the business. He invested Sh175 million in the venture, giving him a 22 percent stake.
Mr Karauri, who is also the Kasarani MP, committed Sh500 million towards the capital required to establish the insurer, taking a 10 percent stake.
Mr Mbugua initially considered exiting the business but changed his mind after the license was granted. His partners, including Mr Karauri had opposed the terms he had set for his exit, including the amount he wanted to be paid.
Other shareholders in Definite are Mikaj Topgrains Company Limited (25 percent), Lydra Ventures Limited (five percent), Jekelusahe Limited (five percent), Monday Maxine Kerubo Oyugi (three percent), Cecily Muthoni Wairimu (three percent) and Patrick Ndirangu Kibuthu (two percent).
Definite brought together investors with different business backgrounds and networks. Mr Mbugua built his profile in the hospitality industry through Quiver Lounge and Grill.
Mr Karauri is the CEO of betting firm SportPesa and also a politician. Kushian Muchiri, another shareholder, brought experience managing Kenya Mpya buses that operate on the Nairobi-Thika route.
Definite’s expansion comes as Directline and Amaco continue to jostle for leadership in a market whose fortunes have shifted over the past two years.
Directline held 60.6 percent of the market in September 2024 before losing ground to Amaco. The latter’s share climbed to 54.71 percent in March 2025, allowing it to overtake Directline for the first time since the IRA began reporting commercial PSV insurance as a separate class.
Amaco’s share has however been on decline as Directline recovers and Definite grows. Amaco has seen its share fall to 47.49 percent in September 2025, to 44.61 percent in December and 21 percent in March 2026, before recovering to 26.79 percent in June.
The insurer is associated with President Ruto’s family and associates, adding to the profile of investors competing in the segment.
Directline has been rebuilding its market position despite earlier shareholder disputes that disrupted its leadership and raised concerns among policyholders.
Many investors are attracted to the matatu insurance business due to the volume of premiums generated by the mandatory motor insurance and the opportunity to invest collected funds.
However, the business comes with risks because frequent accidents, litigation, inflated claims and fraud can quickly erode earnings.
The sector has seen insurers such as Invesco Assurance and Xplico collapse or enter statutory management after struggling with claims and financial obligations.
Insurers have responded in different ways, including raising premiums to reflect risk, withdrawing comprehensive cover from some vehicle models and using telematics to assess driving behaviour and mileage.