Definite Assurance grabs 25% of matatu insurance in 18 months as Amaco’s share halves

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Definite Assurance, an insurer backed by SportPesa chief executive Ronald Karauri and Quiver Lounge & Grill owner Peter Mbugua, now writes a quarter of all matatu insurance in Kenya, only 18 months after it started selling policies.

Figures from the Insurance Regulatory Authority (IRA) show Definite’s share of the commercial public service vehicle (PSV) insurance class rose to 25.03% in June 2026, up from 4.74% a year earlier. For matatu owners, the shift means a third serious option in a class that for years was split mainly between two underwriters.

How fast Definite has grown

Premiums Definite collected from PSV cover jumped to KSh727.05m in the six months to June, from KSh130.79m in the same period last year. The whole class grew far more slowly, with industry premiums rising to KSh2.91bn from KSh2.76bn. In other words, most of Definite’s gain came from customers moving away from other insurers rather than from new business entering the market.

The insurer received its operating licence in December 2024 and began underwriting in January 2025. Its share of the class climbed from 2.35% in March 2025 to 7.71% in September, 10.28% in December and then to just over a quarter by June this year.

Who lost ground

Africa Merchant Assurance Company (Amaco) took the biggest hit. Its share of PSV insurance fell to 26.79% in June from 50.75% a year earlier. Amaco had overtaken long-time leader Directline Assurance in March 2025, when its share peaked at 54.71%, but it has slipped since then, to 47.49% in September 2025, 44.61% in December and 21% in March 2026 before recovering slightly.

Directline, which held 60.6% of the class in September 2024, has clawed back some ground. Its share rose to 43.41% in June from 38.4% a year earlier, keeping it in first place. The insurer has been through a long shareholder dispute, and it is also facing liquidation petitions over a KSh2.6bn deficit, so many operators will be watching how the market settles.

Who owns Definite

Karauri, who is also the Kasarani MP, committed KSh500m towards the capital needed to set up the insurer and holds a 10% stake. Mbugua invested KSh175m for 22%. Other shareholders include Mikaj Topgrains Company Limited with 25%, Lydra Ventures Limited and Jekelusahe Limited with 5% each, and three individual investors with smaller stakes.

Mbugua and his partners disagreed over control and the terms of his planned exit soon after the licence was granted. He later chose to stay, but it is not clear whether all the differences have been settled.

Why insurers want matatu business

PSV cover is compulsory, so it brings in a steady stream of premiums that insurers can invest. The catch is that claims are frequent and expensive. Road crashes, court cases, inflated claims and fraud can wipe out underwriting profits quickly, and several insurers focused on the segment, including Invesco Assurance and Xplico, have collapsed or been placed under statutory management.

Underwriters have responded by raising premiums for riskier vehicles, dropping comprehensive cover for some models and using telematics to price cover according to driving behaviour and mileage.

What it means for matatu owners

More competition can mean better quotes, but the cheapest premium is not always the safest choice. Before switching, owners should check that the insurer is licensed by the IRA, ask how quickly third-party claims are settled, and confirm whether the policy covers passengers as well as other road users. Insurance is one of the biggest fixed costs in running a matatu, alongside fuel and the sacco fee, so it is worth running the numbers in our matatu profit calculator before committing.

New operators can also read our guide to PSV licence requirements in Kenya, which explains where insurance fits among the NTSA documents, and compare the wider market in our list of the top insurance companies in Kenya.