Quiver Lounge owner Peter Mbugua and SportPesa CEO Ronald Karauri are locked in a dispute over the ownership of Definite Assurance Company Limited, a new insurance firm focused on the PSV sector.
The disagreement started after the Insurance Regulatory Authority (IRA) granted the company its operating license on December 11, 2024. Mbugua had initially planned to exit before the license was approved, seeking Ksh 195 million for his stake.
However, once the company received the license, he changed his stance and now values his 22% share at Ksh 500 million, leading to a standoff with his partners.
The controversy was brought to public attention by Cyprian Nyakundi, who shared the details on his X page. Mbugua’s partners, including Ronald Karauri and businessman Kushian Muchiri, argue that he already resigned and signed transfer documents, meaning he should take the original Ksh 195 million and leave.
However, official company records still list Swingers Skypark, a firm linked to Mbugua, as a shareholder.
This suggests the issue remains unresolved, and Mbugua is still legally part of the company. The insurance company was set up with Ksh 175 million from Mbugua and Ksh 500 million from Karauri, among other contributions.
Its goal was to enter the PSV insurance market, especially after the collapse of Invesco Assurance and Xplico. However, with the current shareholder dispute, the firm’s stability is now in question.
Mbugua has accused his partners of sidelining him and making key business decisions behind his back. He claims that after he expressed interest in exiting, the company’s leadership was altered to push him out completely.
Muchiri has dismissed Mbugua’s complaints, stating that the share transfer process was completed and that the Ksh 195 million payment is available for him.
Meanwhile, Karauri has remained silent on the matter, avoiding public confrontation. The disagreement has now escalated, with Mbugua threatening to take legal action.
His lawyer, Dunstan Omari, has stated that they will challenge what they see as an unfair manipulation of the company’s directorship.
This dispute comes at a time when the PSV insurance market is highly competitive. With Definite Assurance being a new player, any instability within its ownership could shake investor confidence.
If the matter proceeds to court, it may delay operations and impact policyholders who had begun signing up for its services. At the core of the issue is whether Mbugua truly completed his exit from the company or if his partners acted prematurely to force him out.
The battle between him and Karauri could define the future of Definite Assurance, and the coming weeks will determine whether the company can survive this internal war.
Add Comment