Key Moments:
- A forged court order barred Paul Ndung’u from ownership dispute proceedings at SportPesa, prompting a criminal probe into forgery.
- The Court of Appeal reversed its earlier decision, allowing Mr Ndung’u to participate in cases regarding SportPesa’s assets and shares.
- Significant shareholder conflicts persist following expulsions, brand transfers, and unresolved consent settlements involving Milestone Games and Pevans East Africa.
Forgery Exposes Deeper Legal Issues
A fraudulent court order significantly affected the participation of businessman Paul Ndung’u in the ongoing ownership disputes involving SportPesa. The invalid order not only excluded Mr Ndung’u from crucial legal proceedings but also triggered a criminal investigation against a leading lawyer over alleged forgery. This development emerged after the Court of Appeal reversed a prior ruling that had previously kept Mr Ndung’u out of pending lawsuits focused on control over SportPesa’s assets and shares.
The fabricated order misrepresented Mr Ndung’u as being permanently disqualified from filing or participating in relevant court cases, including a dispute over the SportPesa trademark used by Milestone Games.
Conflicting Judicial Orders
The original High Court order temporarily barred Mr Ndung’u from involvement with Pevans East Africa, SportPesa’s parent firm, for a two-week period that expired on 24 January 2023. However, the falsified document featured different wording, suggesting a perpetual injunction. Milestone Games submitted this forged order to the Court of Appeal, leading judges to erroneously block Mr Ndung’u from joining proceedings challenging the consent regarding SportPesa’s trademark.
Background to the Shareholder Dispute
The ownership conflict centers on former business partners. Mr Ndung’u and Asenath Wachera collectively hold a 38% stake and are confronting other shareholders, including CEO Ronald Karauri and foreign stakeholders who collectively control nearly half of the organization. Regulatory actions intensified the dispute after Pevans East Africa lost its license in July 2019, reportedly due to tax issues. By October 2020, Milestone Games had entered the market with the SportPesa brand, allegedly excluding Mr Ndung’u and Mrs Maina from their formation.
Ownership Breakdown
| Shareholder | Pevans Stake (%) | Milestone Games Stake (%) |
|---|---|---|
| Paul Ndung’u | 17 | — |
| Asenath Wachera (Maina) | 21 | — |
| Ronald Karauri | — | 71 |
| Robert Macharia | 3 | 14 |
| Gene Grand (US) | 21 | — |
| Guerassim Nikolov, Nikolae Mineva, Ivan Kalpakchiev (BG) | 26 (collectively) | — |
Major Developments and Legal Battles
Mr Ndung’u and Mrs Maina faced further setbacks in October 2022 when a shareholder meeting in Dar es Salaam, Tanzania, led to their expulsion via special resolution. Following their removal, some directors, including Mr Karauri and Mr Macharia, pursued legal orders to restrict the duo from initiating further company-related litigation. Simultaneously, Mr Ndung’u has fought the dilution of his ownership from 17% to 0.8%, labeling it an “irregular dilution scheme.”
The High Court threatened dismissal of a pending case from 2022, with Mr Ndung’u noting subsequent financial losses as Pevans’ operations have become dormant while Milestone Games continues utilizing Pevans’ assets.
Consent Settlement and Continuing Appeals
On 5 November 2024, Mr Ndung’u became aware of a consent agreement between the Betting Control and Licensing Board (BCLB) and Milestone Games, aimed at settling disputes over operational permits and brand utilization. However, the High Court dismissed this arrangement, requiring a full trial. Milestone Games appealed and attempted to settle the cases by consent, still seeking to exclude Mr Ndung’u from proceedings.
SportPesa’s Genesis and Financials
Established in Kenya in 2014 via Pevans, SportPesa’s founders also invested in UK-based SportPesa Global Holdings Limited, with interests spanning markets like Tanzania. Gene Grand (US) owned 21% of Pevans, and Bulgarians Guerassim Nikolov, Nikolae Mineva, and Ivan Kalpakchiev together held 26%. The shareholder group collected Sh7.6 billion (€50 million) in dividends over four and a half years ending June 2019, an indication of the firm’s strong financial performance prior to internal conflict.
Ongoing Investigations
The forged court order, now under criminal scrutiny (OB 23/08/09/2025), continues to complicate resolution efforts, as both local and international courts weigh numerous lawsuits touching on trademarks, domains, and ownership rights tied to the SportPesa gaming brand.
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- Author
Daniel Williams
