SportPesa CEO and Kasarani MP Ronald Karauri’s decision to publicly challenge blogger Edgar Obare with a Sh10 million bounty has opened a fresh line of scrutiny in an already explosive saga.
While Karauri trained his fire on Obare, daring him to release an alleged explicit tape, the original leaks did not come from the blogger.
They were first posted by a man claiming to be the MP’s former male lover, who shared screenshots and short private clips on his own Instagram page before the story was amplified across gossip platforms.
That gap has not gone unnoticed.
The alleged lover went public with claims that he is living in fear, alleging surveillance and threats after disagreements linked to the recordings. He stated “I am not safe” and said responsibility should fall on the MP if anything happens to him. The material he posted quickly spread online, with Obare and other bloggers providing commentary and further circulation.
Yet in his fiery video response, Karauri did not address the man directly. He did not deny knowing him. He did not threaten legal action against the individual who published the alleged private content. Instead, he zeroed in on Obare, accusing the blogger of clout chasing and daring him to drop the alleged tape.
Political observers are asking why.
If the material was first released by the alleged lover, why not confront or sue the source? Why not file a criminal complaint over alleged extortion or cyber harassment? Why focus on the amplifier rather than the originator?
Some analysts suggest the answer may lie in platform power. Obare commands a vast online following and has repeatedly shaped national conversations around celebrity scandals. By confronting him, Karauri may have been targeting the loudest megaphone in the room rather than the initial whistleblower.
Others see something more strategic. Addressing the alleged lover directly could implicitly acknowledge a relationship, even in denial. By shifting the spotlight to Obare, Karauri reframed the narrative as a battle against a gossip merchant rather than a dispute with a man claiming intimate ties.
Still, the optics are complicated. Legal experts note that if Karauri believes the claims are defamatory, the primary legal target would ordinarily be the person who originated the allegations and published the material. The absence of any publicly confirmed complaint against the alleged lover fuels speculation.
On social media, the question is being asked bluntly. Why challenge the commentator and not the claimant? Is this a tactical move to control the narrative, or does it signal caution about confronting the source head on?
In the court of public opinion, such information voids often become as loud as the allegations themselves. For a businessman whose empire thrives on calculated risk, this may be his boldest gamble yet.
As Kenyans wait to see whether any video surfaces or any legal action is filed, one thing is certain. The Sh10 million dare has shifted the spotlight, but it has not silenced the deeper questions.
A fresh storm has erupted around SportPesa CEO and Kasarani MP Ronald Karauri after a man claiming to be his former male lover went public with shocking allegations that he fears for his life.
In dramatic social media posts that spread like wildfire across gossip blogs and WhatsApp groups, the man alleged that his once-secret relationship with the powerful politician and businessman has turned into a nightmare.
He claimed he is being followed by unknown vehicles and receiving threatening messages, warning that both he and his family are at risk.
To back his claims, the man released screenshots of what he described as private conversations and short private videos allegedly recorded during their relationship.
The material quickly circulated online, igniting heated debate and speculation across the country.
According to the man, the situation escalated after disagreements linked to the alleged private recordings. He claimed pressure was mounted on him to keep quiet and that after relocating to a new apartment out of fear, his alleged tormentors somehow traced his new location and even sent him details of his house number.
“I am not safe,” he wrote in one post, adding that should anything happen to him, responsibility should be placed on the MP. He said he now lives in constant fear and cannot move freely.
The allegations have stunned many Kenyans given Karauri’s public image and influence in both business and politics.
As the claims trended, reactions were split, with some demanding investigations while others urged caution, warning against social media trials and unverified narratives.
By the time of publication, Ronald Karauri had not issued a public statement addressing the allegations. Police have also not confirmed whether any formal report has been filed or whether investigations are underway.
Legal observers note that beyond the explosive claims, the circulation of alleged private material raises serious questions about privacy, cybercrime and possible extortion.
They stress that allegations shared online remain just that until tested through proper legal channels.
For now, the saga continues to grip the gossip grapevine, blending power, secrecy and fear.
Whether it ends in arrests, court battles or quiet denials remains unclear, but the allegations have already placed one of Kenya’s most high-profile figures under intense and unforgiving scrutiny.
Below are the screenshots and video shared by Edgar Obare allegedly from a distraughted male lover.
Karauri’s Camp Accused of Manufacturing Court Documents to Eliminate Business Rival
A senior advocate is staring at possible criminal prosecution after investigators uncovered a sophisticated forgery scheme designed to eliminate a key shareholder from the high-stakes battle for control of the SportPesa betting empire.
The Directorate of Criminal Investigations has opened file OB 23/08/09/2025 targeting the prominent lawyer who allegedly doctored a High Court order to permanently bar businessman Paul Wanderi Ndung’u from protecting his multi-billion shilling stake in Pevans East Africa, the original owners of the SportPesa brand.
The scam, now exposed by the Court of Appeal, involved transforming a routine two-week interim injunction issued on January 12, 2023, into a fabricated permanent restraining order.
The fake document was then strategically filed at the Court of Appeal, successfully deceiving three appellate judges into blocking Ndung’u from crucial litigation over the SportPesa trademark.
The Forged Order
Court records reveal the authentic High Court order merely restrained Ndung’u from dealing in Pevans East Africa affairs for fourteen days ending January 24, 2023.
However, the manufactured version presented to the appellate court bore “different wordings” suggesting a perpetual injunction had been granted.
The forgery proved devastatingly effective.
On February 11, 2023, Justices Daniel Musinga, Mumbi Ngugi and George Odunga unwittingly relied on the fraudulent document to dismiss Ndung’u’s application to join litigation challenging a controversial consent between Milestone Games and the Betting Control and Licensing Board.
Paul Wanderi Ndung’u
It took nearly two years before the same bench discovered they had been duped.
In their recent ruling reversing the 2023 decision, the judges noted pointedly that “the said orders were interim in nature and lapsed by operation of the law as they had not been extended.”
More damning was their observation that Milestone Games—the vehicle through which SportPesa CEO Ronald Karauri and his allies have seized control of the betting brand—never challenged Ndung’u’s claim that the order had expired. The silence speaks volumes.
Karauri’s Fingerprints
While the lawyer under investigation remains unnamed pending formal charges, the timing and beneficiaries of the forgery paint a clear picture.
The fake order emerged precisely when Karauri and his co-directors at Milestone Games were desperately trying to cement their control over the SportPesa brand while permanently sidelining Ndung’u and fellow shareholder Asenath Wachera Maina.
The consent agreement that Ndung’u sought to challenge and which the forged order prevented him from contesting was itself deeply suspect.
Five out of seven BCLB directors disowned the deal and rejected claims they had approved Milestone’s use of the SportPesa trademark.
The manufactured court order conveniently eliminated the most vocal opponent just as this questionable consent was being pushed through the courts. Coincidence? Hardly.
Karauri and Robert Macharia, who held merely three percent in the original Pevans company, now control Milestone Games with 71 percent and 14 percent stakes respectively.
They’ve effectively hijacked a brand that generated dividends totaling Sh7.6 billion in just four and half years to June 2019.
Corporate Theft Wrapped in Legal Procedure
Ndung’u and Maina, who held 17 percent and 21 percent stakes respectively in Pevans, now face being forced out without compensation. Ndung’u’s shareholding has been diluted from 17 percent to a paltry 0.8 percent through what he terms “an irregular dilution scheme.”
The coup began in October 2022 with a general meeting in Dar es Salaam, Tanzania, where a special resolution was passed to expel Ndung’u and Maina. When the expelled shareholders attempted to fight back through the courts, they were met with the forged injunction.
The playbook is clear: expel inconvenient shareholders, manufacture legal documents to silence them, then use compliant lawyers and questionable consent agreements to legitimize the corporate theft.
Questions Mount
Who instructed the lawyer to forge the court order? Who drafted the fake document? Who filed it at the Court of Appeal? And most critically—who paid for these services?
The lawyer under investigation didn’t act in a vacuum. Legal forgery of this sophistication requires detailed instructions from a client with both motive and means.
Karauri and his directors at Milestone sought court orders stopping Ndung’u and Maina from filing cases on behalf of the company, claiming they had been expelled and lacked authority.
When legitimate court processes proved insufficient, did they resort to forgery?
Pevans’ operations remain dormant while its assets continue to be used by Milestone Games—a corporate corpse being stripped of valuable organs while the rightful heirs are locked out by forged court orders.
The Reckoning
The Court of Appeal’s scathing reversal has blown open what may be one of Kenya’s most brazen cases of judicial fraud in a commercial dispute.
The three appellate judges made clear that Ndung’u’s “alleged expulsion as a shareholder of Pevans is one that requires proper interrogation”—interrogation that was deliberately prevented by the forged order.
For Karauri, the unraveling forgery scandal threatens to expose the questionable foundations upon which Milestone’s control of SportPesa rests.
Multiple consent agreements, dubious shareholder expulsions, and now criminal forgery—this is the murky legal swamp from which his betting empire has emerged.
The senior lawyer facing investigation should prepare for more than professional embarrassment. Manufacturing court orders strikes at the heart of judicial integrity.
The Law Society of Kenya will certainly want answers. So will the courts that were deceived.
But the bigger question remains: who gave the orders? In whose interest was this brazen forgery committed? The DCI investigation file OB 23/08/09/2025 may yet reveal that the lawyer was merely the scribe for a darker conspiracy to steal a multi-billion shilling business empire.
For now, both Karauri and his unnamed legal accomplice must be sweating as investigators close in.
The forged order that seemed so clever in 2023 has become a ticking time bomb in 2025—one that threatens to blow up not just legal careers, but the entire edifice of Milestone’s questionable claim to the SportPesa brand.
Justice, as they say, may be slow. But forgery leaves a paper trail that doesn’t disappear.
A fierce boardroom and shareholder battle is rocking Definite Assurance Company Limited, Kenya’s newest insurance firm targeting the lucrative public service vehicle (PSV) sector, barely two months after it received its operating licence from the Insurance Regulatory Authority (IRA) on December 11, 2024.
The escalating conflict, pitting prominent businessmen Ronald Karauri and Peter Mbugua against each other, threatens to destabilize the fledgling insurer and expose the murky dealings behind its inception.
At the heart of the dispute is Peter Mbugua, the Quiver Lounge & Grill owner, whose former allies in the company—including SportPesa CEO and Kasarani MP Ronald Karauri—are pushing for his exit. The fallout has spiraled into a high-stakes valuation war, with Mbugua demanding Sh500 million for his 22 percent stake, a figure his partners dismiss as outrageous, offering him Sh195 million instead—a sum they claim he had previously agreed to accept.
The rift began brewing in early November 2024, when delays in securing the IRA licence left Mbugua disillusioned. Citing the prolonged uncertainty, he sought to cash out his initial Sh175 million investment, which included Sh75 million for setup costs and Sh100 million toward the firm’s capital.
At the time, he requested an additional Sh20 million as a premium, notifying IRA Commissioner Godfrey Kiptum of his intent to withdraw on November 13. Karauri, holding a 10 percent stake and having injected Sh500 million into the firm, initially agreed to buy Mbugua’s shares, a move that would have elevated his ownership to 32 percent.
But the deal unraveled when the IRA licence was finally granted in December. Emboldened by the firm’s newfound regulatory approval, Mbugua reversed course, hiking his asking price to Sh500 million.
“How does he expect the value of my shares to be the same before and after the licence?” Mbugua said, “It’s like agreeing to sell a Range Rover without an engine, tyres, and gearbox for Sh1 million, then the buyer disappears for a month, resurfaces when I’ve installed everything, and still wants to pay the same amount.”
Mbugua accuses Karauri and other shareholders, including businessman Kushian Muchiri—who holds a 30 percent stake—of sidelining him and running the company without his input. “I put in Sh175 million as seed capital, but I’ve been kept in the dark about operations,” he lamented, pointing fingers at Karauri as the mastermind behind his exclusion.
Muchiri, however, paints a different picture, asserting that Mbugua voluntarily resigned and signed off on the sale of his shares for Sh195 million.
“He resigned, signed shareholder and board resolutions, and share transfer forms,” Muchiri said. “The shares were sold to raise his requested settlement. The money is ready whenever he wants it.” Official records from the Business Registration Service (BRS) still list Mbugua’s Swingers Skypark as the holder of the 22 percent stake, adding fuel to the ownership dispute.
The turmoil marks a shaky start for Definite Assurance, which aimed to disrupt the PSV insurance market—a Sh5.5 billion-a-year segment plagued by losses and the collapse of players like Invesco Assurance and Xplico.
The firm had hoped to capitalize on Muchiri’s expertise in the matatu industry, gained from managing Kenya Mpya buses, and the financial muscle of Karauri, a betting mogul who reaped billions from SportPesa, and Mbugua, whose Quiver Lounge chain has become a nightlife staple in Nairobi.
The partnership, once a promising blend of wealth and ambition, has soured into a bitter feud. Mbugua, who claims to have built his fortune from humble beginnings in the alcohol trade, alleges that his partners are manipulating the company’s directorship behind his back.
Through his lawyer, Dunstan Omari, he has threatened legal action, warning that “additional persons/directors” unknown to him have been introduced into the firm. “We shall move to protect our client’s interest by instituting legal proceedings,” Omari’s letter to the company stated.
Karauri, faces mounting pressure as the public face of the insurer. His Sh500 million investment was pivotal in meeting the Sh600 million minimum capital requirement for a general insurance company in Kenya, but the ongoing spat risks undermining Definite Assurance’s credibility before it can even establish a foothold.
As the boardroom war intensifies, industry watchers warn that the fallout could jeopardize the company’s mission to revolutionize matatu insurance.
With rival Directline Assurance, the market leader owned by media tycoon SK Macharia, already grappling with its own shareholder and regulatory woes, Definite Assurance’s internal chaos may leave the PSV insurance segment vulnerable at a critical juncture.
For now, the firm’s future hangs in the balance as its founders battle over money, power, and control.
The government of the United Kingdom is set to inherit Sh2 billion worth of assets held by SPS Sportsoft Limited, a gambling software and support services company which owns SportPesa.
SPS Sportsoft’s top client is Kenya-based Pevans East Africa Limited which shut down it’s operations in 2019 after the Kenyan government declined to renew its operating licence over tax evasion scandals.
“The Registrar of Companies gives notice that, unless cause is shown to the contrary, the company will be struck off the register and dissolved not less than two months from the date shown above… Upon the company’s dissolution, all property and rights vested in, or held in trust for, the company are deemed to be bona vacantia, and will belong to the Crown.” SPS stated.
Bona vacantia translates to vacant goods or ownerless assets. In the UK such assets including those of dissolved firms and estates of people who die without a will or blood relatives are inherited by the government.
SPS has note disclosed the reasons why it is being liquidated but it has suffered losses Kenya where shareholders are embroiled in wrangles. Pevans was the biggest client generating upto £20.6 million (Sh3.1 billion) in 2018 and accounting for 96% of the total revenue of £21.6 million (Sh3.2 billion).
Other clients operating SPS include SPGHL’s subsidiaries which also trades under the Sportpesa brand in Tanzania and South Africa. The firm’s dissolution means that assets worth £13.2 million (Sh2 billion) that will be surrendered to the UK government.
SPS’s creditors also risk losing upto £8.5 million (Sh1.2 billion) that they were owed in the review period. It was required to publish its 2019 accounts by December last year but did not meet the deadline pushing the authorities to have it liquidated without the release of its updated financial statements.
The fall of SPS is a mojor blow to Kenyan businessmen Asnath Maina and Paul Ndung’u and Asenath Maina who fell out with their Bulgarian counterparts over control and ownership of SportPesa.
Pevans’ operating licence was revoked in July 2019 over unpaid taxes and penalties that now stand at Sh95 billion according to the Kenya Revenue Authority (KRA). It was the second largest company by revenue with close to Sh150 billion in 2018, only coming second to Safaricom.
But the Bulgarian investors later teamed with Ronald Karauri, Pevans’ chief executive office to form Milestone Games Limited where they transferred the SportPesa trade name. Sportpesa brand was moved from Pevans to SPGHL for £100,000 (Sh15.1 million) and then to Milestone in transactions that began on June 2, 2020.
One Kalina Karadzhova acted for SPGHL Mr Karauri signed the deed of assignment on behalf of Pevans but it later emerged that Karauri controls close 55% stake in Milestone.
