Ndung’u loses SportPesa battle, ordered to pay millions in costs
The judge dismissed Co-founder’s claims that his 17 per cent stake was unlawfully reduced to 0.85 per cent through share issues between 2019 and 2022.
Kenya.- A London court has ordered Paul Wanderi Ndung’u, a former Co-founder of African betting operator SportPesa, to pay KSh 374m (€2.55m) in legal costs to the company and its directors after he lost his challenge to reclaim a stake in the betting firm.
The order, issued on December 10, requires Ndung’u to make an interim payment by January 9, 2026. He must pay KSh 94.5m (€650,000) to SportPesa Global Holdings Limited (SGHL) and KSh 275.9m (€1.9m) to the directors. Interest will apply if he misses the deadline.
The costs are due to a November 2025 ruling by Justice Edwin Johnson in the case Ndung’u v SPG Limited. The judge dismissed Ndung’u’s claims that his 17 per cent stake was unlawfully reduced to 0.85 per cent through share issues between 2019 and 2022. The court found no proof of fraud, forgery, conspiracy or unfair treatment by directors including Guerassim Nikolov, Gene Grand, Kalilina Lyubomirova and Asenath Wachera Maina.
The share dilution happened after Pevans East Africa, the first Kenyan SportPesa operator, lost its betting licence in 2019 over a tax dispute with the Kenya Revenue Authority. The company stopped trading in Kenya, and its value dropped. Directors raised new capital to keep international operations going and transferred the SportPesa trademark to SGHL and later to Milestone Games Limited, the current owner led by CEO Ronald Karauri.
Ndung’u argued these steps were meant to exclude him and another minority shareholder. The judge ruled the actions were necessary to save the business and followed proper procedures. Ndung’u had been offered chances to invest in the new shares but did not take part.
SportPesa directors welcomed the outcome in a shared statement: “We are delighted with this decision. The UK High Court found that the allegations made against us had no substance. We always knew that we acted legally and properly at all times, and this judgment confirms that.”
