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Paul Ndung’u, a prominent Kenyan businessman and shareholder in Pevans East Africa, the company behind the popular SportPesa betting brand, is auctioning off a residential property located in Nairobi.
The four-bedroom, double-story house in Gigiri is being sold through Garam Auctioneers, a well-established Kenyan auction house with more than 28 years of experience in the retail industry.
Amidst a legal dispute with fellow shareholders in Pevans East Africa, Ndung’u and another shareholder, Asenath Wachera Maina, were removed from their positions in Pevans East Africa following a special resolution.
Ronald Karauri, who made the announcement, revealed that Pevans is facing a staggering Ksh14.3 billion ($114.7 million) in negative equity.
As a result, Ndung’u and Maina, who had a combined 38-percent stake in the now-defunct holding company, will not receive any compensation for their investments.
In response, Ndung’u expressed his disappointment, stating that the meeting where he and Asenath Wachera Maina were expelled was not conducted in accordance with the Companies Act. “It was not properly convened and did not take place in Tanzania, as per the Companies Act,” he emphasized.
Through his legal representative, Ekuru Aukot, Ndung’u clarified that the injunction against him and Maina had already expired on Jan. 24, as per the law, and had not been renewed. He also explained the requirements for the special resolution to pass, stating that it must receive the support of shareholders holding a minimum combined stake of 75 percent.
During the period when Pevans East Africa operated the SportPesa brand, Ndung’u, a reclusive business leader who is a significant shareholder and non-executive director of Life Care Medics, received Ksh1.3 billion ($11.1 million) from the company until it ceased operations in June 2019.
Pevans East Africa, the holding company for SportPesa, began distributing dividends to its shareholders in 2015, with a total payout of Ksh1.57 billion ($23.46 million). Its highest dividend payout was in 2016, with Ksh4.3 billion ($36.9 million) distributed to shareholders.
However, the company’s payouts decreased in the following years, with Ksh290.3 million ($2.5 million), Ksh876.5 million ($7.51 million), and Ksh559.9 million ($4.8 million) paid out in 2017, 2018, and 2019, respectively.
The company eventually ceased operations in 2019 due to a government crackdown over alleged tax evasion and concerns about gambling addiction.
