Court Blow for Ndung’u: Judge Dismisses Fraud Claims Against SportPesa as Baseless
A High Court judge has thrown out fraud and conspiracy allegations brought by Paul Wanderi Ndung’u, a founding shareholder and former chairman of SportPesa, ruling that his claims of illegal share dilution in the betting company’s global holding entity were entirely unsupported by evidence.
In a 190-page judgment handed down on November 18, Mr Justice Edwin Johnson dismissed Ndung’u’s case against SportPesa Global Holdings Limited (SPGHL) and several directors and shareholders, including Guerassim Nikolov, Gene Grand, Kalilina Lyubomirova, and Asenath Wachera (widow of the late Dick Wathika), with the former executive ordered to pay costs.
Ndung’u had alleged that between 2019 and 2022 his stake in SPGHL was deliberately and unlawfully slashed from 17% to 0.8% through forged documents, secret share allotments, and a conspiracy to squeeze him out. He sought compensation for what he called oppressive conduct and substantial financial loss.
Justice Johnson rejected every major plank of the claim:
- No evidence of forgery
- No conspiracy to dilute shares
- Share allotments were lawful and necessary to inject capital during a period of severe financial difficulty
- No oppressive or unfairly prejudicial conduct toward Ndung’u
- Ndung’u had not, in fact, lost confidence in the company’s management despite asserting the opposite
The judge found that the dilution resulted from legitimate efforts to keep the wider SportPesa group afloat after its Kenyan operating company, Pevans East Africa, was hit hard by tax disputes and regulatory turmoil. Even if wrongdoing had occurred — which the court said it did not — Ndung’u failed to prove his shares had any measurable value at the relevant times.
Ndung’u also complained he was kept in the dark about key decisions. The court found no evidence of deliberate exclusion.
SportPesa reacts
In a statement after the ruling, SportPesa’s directors welcomed the decision:
“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.
“In a 190-page judgment, the UK High Court found no evidence of the allegations made against SportPesa. We are looking forward to putting this behind us and focusing on our future growth and expansion.”
The case , Ndung’u v SPG Limited (CR-2022-000135) , marks the end of a multi-year legal battle that began after Ndung’u’s relationship with other shareholders soured during SportPesa’s turbulent exit and re-entry into the Kenyan market.
With the London claim now dismissed in its entirety, attention is likely to shift back to the company’s ongoing expansion plans across Africa and beyond.
