Kenyan businessman Paul Ndung’u challenges SportPesa trademark transfer in new court fight

Paul Ndung’u returns to court, challenging the transfer of the SportPesa trademark and accusing former partners of arranging a fraudulent deal.

Kenyan businessman Paul Ndung’u challenges SportPesa trademark transfer in new court fight
Kenyan businessman Paul Ndung’u challenges SportPesa trademark transfer in new court fight

Kenyan businessman Paul Ndung’u is back in court, this time fighting over the rights to the well-known SportPesa gaming trademark. Ndung’u has filed a new suit accusing his former partners of arranging a fraudulent transfer of the brand, disguising ownership changes, evading taxes, and using forged documents to complete the deal.

The dispute centers on Pevans East Africa, the company that launched SportPesa and once dominated Kenya’s sports-betting market. Ndung’u, a former chairman and one of its long-time shareholders, is asking the High Court to stop Milestone Games—a company tied to his former partners—from using the SportPesa name until the case is settled. The move underscores the long-running internal rifts among the original investors.

Paul Ndung’u seeks reversal of trademark deal

In his filing, Ndung’u claims the Registrar of Trademarks supported the disputed transfer by approving the sale of two SportPesa trademarks from Pevans East Africa to Sport Pesa Global Holdings Limited (SPGHL), a U.K.-based affiliate. Each trademark was transferred for £100,000 ($131,866). Ndung’u argues the sale was completed without proper authorization and should be reversed so that the trademark can return to Pevans East Africa.

This legal push follows a major setback for him in 2023 when Ndung’u and Bernard Maina, were expelled from Pevans East Africa following a special shareholders’ meeting. At the time, CEO and shareholder Ronald Karauri said their removal stemmed from persistent legal challenges they had launched against the company. Pevans had already faced regulatory pressure, and its license was cancelled in 2019 over alleged tax violations.

Pevans dividends, SportPesa dispute reignited

Before the company shut down, Pevans East Africa was highly profitable. It paid out Ksh1.57 billion ($23.46 million) in dividends starting in 2015 and recorded its highest annual payout in 2016 at Ksh4.3 billion ($36.9 million). Ndung’u himself received Ksh1.3 billion ($11.1 million) in total distributions between 2015 and mid-2019. The company’s earnings began to fall after regulatory scrutiny intensified, and operations eventually ceased in 2019.

SportPesa later resurfaced under Milestone Games, an entity controlled by Karauri and several investors tied to the original company. That relaunch triggered fresh disputes, with Ndung’u and Maina accusing Karauri of staging an improper takeover through Milestone and locking out the original Kenyan investors. Their latest legal action now places the ownership of one of Kenya’s most recognizable betting brands back under the court’s spotlight.

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