In a candid conversation, Ronald Karauri, a former Kenya Airways pilot turned entrepreneur, recently opened up about how his personal experience with gambling led to the co-founding of SportPesa, one of Africa’s largest betting companies.
Karauri, who now also serves as a Member of Parliament for Kasarani, detailed his journey during a podcast interview with fellow pilot Eric Mutiso.
Karauri’s entry into the betting industry began with a personal fascination—poker.
Inspired by watching professional poker on ESPN, he took up the game as a hobby, practicing at home before trying his luck at a Nairobi casino.
It was there that Karauri’s frequent visits led to a friendship with the casino’s owner, a relationship that would prove pivotal.
“Over time, we started having conversations about betting and sports,” Karauri recalled. “One day, he mentioned that he was thinking of starting a sports betting company, and I immediately wanted to be involved.”
That company would become SportPesa, a venture that skyrocketed in profitability, pulling in Ksh12.6 billion within its first five years.
Karauri’s background as a poker player helped him understand the dynamics of the gambling world, particularly the psychology of players.
“Poker teaches you a lot about people, their behavior, and how they handle pressure. That insight helped me when we started talking about how to build SportPesa.”
With the idea in place, the next step was securing capital.
Karauri, then still employed as a pilot, made a significant financial leap by selling a piece of land he owned, raising Ksh25 million to invest in the fledgling company.
It was a bold move, one he didn’t fully disclose to his family at the time.
“It was a matter of trust,” he said. “I didn’t share all the details with my wife, but she believed in me.”
SportPesa started modestly, initially as an SMS-based betting platform in a country where smartphones and internet access were not yet widespread.
“At that time, apps weren’t big, and not everyone had access to mobile data,” Karauri explained. “We saw an opportunity with SMS betting, and it took off quickly.”
For a year and a half, SportPesa operated while Karauri continued to work as a Boeing 737 captain for Kenya Airways.
But as the company grew, his partners urged him to take a more active role in its management.
Reluctant at first, he eventually decided to leave his aviation career behind in 2015 to focus on SportPesa full-time.
Reflecting on his decision to leave Kenya Airways after 11 years, Karauri noted that his earlier business ventures had taught him the value of hands-on leadership.
“I’d been involved with other businesses before, like Skylux Lounge, where we weren’t as present as we should’ve been. I knew with SportPesa, I had to be there.”
The decision to leave the security of a piloting career for the uncertain waters of a start-up has since paid off.
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