SportPesa co-founder Ronald Karauri-backed insurer captures 25% of Kenya’s $22 million matatu market as Ruto-linked rival loses nearly half its share

The company’s premiums from matatus and other commercial passenger vehicles increased more than fivefold to approximately $5.6 million (KSh727.05 million), from about $1 million (KSh130.79 million).

Its rapid expansion came as Africa Merchant Assurance Company, widely known as Amaco, lost almost half its share of the market. Amaco’s market share fell from 50.75% to 26.79% during the same period.

Although Amaco still narrowly leads Definite, the gap between the two companies has been reduced to fewer than two percentage points.

The figures were reported by Kenya’s Business Daily⁠, based on disclosures from the country’s Insurance Regulatory Authority. The regulator’s data show that the entire commercial public-service vehicle segment generated approximately $22.4 million (KSh2.91 billion) in premiums during the first half of 2026, up from KSh2.76 billion a year earlier.

Definite’s gains are reshaping a segment traditionally dominated by Amaco and Directline Assurance.

Directline remained the largest matatu insurer, increasing its market share from 38.4% to 43.41%. Definite’s advance therefore came principally at the expense of Amaco rather than Directline.

Definite received its operating licence in December 2024 and began underwriting insurance policies in January 2025.

Its share of Kenya’s matatu insurance market rose from 2.35% in March 2025 to 7.71% in September and 10.28% in December. By June 2026, it had more than doubled again to 25.03%.

Karauri, who is also the member of parliament for Nairobi’s Kasarani constituency, committed about $3.8 million (KSh500 million) towards establishing the insurer and received a 10% stake.

He is joined in the business by Peter Mbugua, the founder of Kenya’s Quiver Lounge and Grill entertainment chain. Mbugua invested approximately $1.35 million (KSh175 million) and was allocated a 22% interest.

The description of Amaco as Ruto-linked is based on its disclosed ownership. Government records previously reviewed by Business Daily showed that the president’s family owned 15.83% of the insurer through Yegen Farms Limited.

First Lady Rachel Ruto and the president’s daughter, Charlene Ruto, were listed as shareholders of Yegen Farms. The company held 190,000 Amaco shares as of October 2024, almost four times its holding in July 2022.

Matatu insurance is an important part of Kenya’s transport economy because public-service vehicles must carry insurance against third-party liabilities.

The mandatory nature of the cover gives insurers access to a large and recurring pool of premiums. They can also invest the premiums collected while awaiting claims.

However, the business is notoriously difficult. Frequent accidents, fraudulent and inflated claims, court awards and high repair costs can quickly consume the premiums received.

Industry data for 2025 showed that motor public-service vehicle insurance recorded a claims ratio of 131%, meaning insurers incurred KSh131 in claims for every KSh100 collected in premiums.

Definite’s rapid expansion therefore does not automatically translate into an equivalent increase in profit.

Its longer-term challenge will be to manage claims, pricing and operating costs while retaining the transport operators that have helped it take market share from Amaco.