The dispute over Definite Assurance, Kenya’s newest PSV insurer, escalates as Peter Mbugua, a 22% shareholder, claims Ronald Karauri and partners sidelined him.
Peter Mbugua founded Quiver Lounge & Grill, a top entertainment spot in Nairobi with multiple locations. He invested Ksh175M in Definite Assurance and now seeks Ksh500M for his shares, but his partners offer Ksh195M.
A shareholder row erupts at Definite Assurance pitting Quiver boss Peter Mbugua against SportPesa CEO and MP Ronald Karauri.
Licensed by the Insurance Regulatory Authority (IRA) on December 11, 2024, Definite Assurance entered the market aiming to fill a gap in the risky and often unprofitable PSV segment. Despite the strong debut, an internal shareholder fallout is threatening its stability.
Peter Mbugua, who claims to have invested KSh175 million, says he holds a 22% stake and now wants to exit the company for KSh500 million. Mbugua alleges being sidelined after licensing delays.
However, Kushian Muchiri, the majority shareholder at 30%, insists Mbugua resigned, signed over his shares, and agreed to a KSh195 million settlement.
“He resigned, signed shareholder and board resolutions, and share transfer forms. The shares were later sold to fulfill his requested payout,” Muchiri told The Business Daily.
As Kenya’s regulated sectors attract more private capital, the resolution of this case will serve as a litmus test for investor protections and corporate governance in the insurance space.
