It seems my implementation is incorrect and not sure what exactly I'm doing wrong:
Here is the histogram of my image:

So the threshold should be around 170 ish? I'm getting the threshold as 130.
Here is my code:
#Otsu in Python
import numpy as np
from PIL import Image
import matplotlib.pyplot as plt  
def load_image(file_name):
    img = Image.open(file_name)
    img.load()
    bw = img.convert('L')
    bw_data = np.array(bw).astype('int32')
    BINS = np.array(range(0,257))
    counts, pixels =np.histogram(bw_data, BINS)
    pixels = pixels[:-1]
    plt.bar(pixels, counts, align='center')
    plt.savefig('histogram.png')
    plt.xlim(-1, 256)
    plt.show()
    total_counts = np.sum(counts)
    assert total_counts == bw_data.shape[0]*bw_data.shape[1]
    return BINS, counts, pixels, bw_data, total_counts
def within_class_variance():
    ''' Here we will implement the algorithm and find the lowest Within-  Class Variance:
        Refer to this page for more details http://www.labbookpages.co.uk
/software/imgProc/otsuThreshold.html'''
    for i in range(1,len(BINS), 1):         #from one to 257 = 256 iterations
       prob_1 =    np.sum(counts[:i])/total_counts
       prob_2 = np.sum(counts[i:])/total_counts
       assert (np.sum(prob_1 + prob_2)) == 1.0
       mean_1 = np.sum(counts[:i] * pixels[:i])/np.sum(counts[:i])
       mean_2 = np.sum(counts[i:] * pixels[i:] )/np.sum(counts[i:])
       var_1 = np.sum(((pixels[:i] - mean_1)**2 ) * counts[:i])/np.sum(counts[:i])
       var_2 = np.sum(((pixels[i:] - mean_2)**2 ) * counts[i:])/np.sum(counts[i:])
       if i == 1:
         cost = (prob_1 * var_1) + (prob_2 * var_2)
         keys = {'cost': cost, 'mean_1': mean_1, 'mean_2': mean_2, 'var_1': var_1, 'var_2': var_2, 'pixel': i-1}
         print('first_cost',cost)
       if (prob_1 * var_1) +(prob_2 * var_2) < cost:
         cost =(prob_1 * var_1) +(prob_2 * var_2)
         keys = {'cost': cost, 'mean_1': mean_1, 'mean_2': mean_2, 'var_1': var_1, 'var_2': var_2, 'pixel': i-1}  #pixels is i-1 because BINS is starting from one
    return keys
if __name__ == "__main__":
    file_name = 'fish.jpg'
    BINS, counts, pixels, bw_data, total_counts =load_image(file_name)
    keys =within_class_variance()
    print(keys['pixel'])
    otsu_img = np.copy(bw_data).astype('uint8')
    otsu_img[otsu_img > keys['pixel']]=1
    otsu_img[otsu_img < keys['pixel']]=0
    #print(otsu_img.dtype)
    plt.imshow(otsu_img)
    plt.savefig('otsu.png')
    plt.show()
Resulting otsu image looks like this:

Here is the fish image (It has a shirtless guy holding a fish so may not be safe for work):
Link : https://i.stack.imgur.com/EDTem.jpg
EDIT:
It turns out that by changing the threshold to 255 (The differences are more pronounced)

I used the implementation @Jose A in posted answer, which tries to maximize the interclass variance. It looks like jose has forgotten to multiply intensity level to their respective intensity pixel counts (in order to calculate mean), So I corrected the calculation of background mean mub and foreground mean muf. I am posting this as an answer and also trying to edit the accepted answer.
def otsu(gray):
    pixel_number = gray.shape[0] * gray.shape[1]
    mean_weight = 1.0/pixel_number
    his, bins = np.histogram(gray, np.arange(0,257))
    final_thresh = -1
    final_value = -1
    intensity_arr = np.arange(256)
    for t in bins[1:-1]: # This goes from 1 to 254 uint8 range (Pretty sure wont be those values)
        pcb = np.sum(his[:t])
        pcf = np.sum(his[t:])
        Wb = pcb * mean_weight
        Wf = pcf * mean_weight
        mub = np.sum(intensity_arr[:t]*his[:t]) / float(pcb)
        muf = np.sum(intensity_arr[t:]*his[t:]) / float(pcf)
        #print mub, muf
        value = Wb * Wf * (mub - muf) ** 2
        if value > final_value:
            final_thresh = t
            final_value = value
    final_img = gray.copy()
    print(final_thresh)
    final_img[gray > final_thresh] = 255
    final_img[gray < final_thresh] = 0
    return final_img
                        I dont know if my implementation is alright. But this is what I got:
def otsu(gray):
    pixel_number = gray.shape[0] * gray.shape[1]
    mean_weigth = 1.0/pixel_number
    his, bins = np.histogram(gray, np.array(range(0, 256)))
    final_thresh = -1
    final_value = -1
    for t in bins[1:-1]: # This goes from 1 to 254 uint8 range (Pretty sure wont be those values)
        Wb = np.sum(his[:t]) * mean_weigth
        Wf = np.sum(his[t:]) * mean_weigth
        mub = np.mean(his[:t])
        muf = np.mean(his[t:])
        value = Wb * Wf * (mub - muf) ** 2
        print("Wb", Wb, "Wf", Wf)
        print("t", t, "value", value)
        if value > final_value:
            final_thresh = t
            final_value = value
    final_img = gray.copy()
    print(final_thresh)
    final_img[gray > final_thresh] = 255
    final_img[gray < final_thresh] = 0
    return final_img

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