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Kenyan businessman Paul Ndung’u, a former chairman and shareholder of Pevans East Africa, the parent company of the popular SportPesa betting brand, may face up to six months in jail for contempt of court.
This follows his expulsion as a shareholder three months ago after he initiated court proceedings against the company. Its license was revoked in 2019 due to allegations of tax evasion.
High Court Judge Joseph Sergon has summoned Ndung’u to explain why he should not be jailed for his alleged disobedience of a valid court order issued on March 25, 2022. N
dung’u is embroiled in a loan dispute with Equity Group, Kenya’s leading financial services group.
According to the court documents, Ndung’u allegedly disobeyed a court order prohibiting him from disseminating information about SportPesa and its directors, Ronald Karauri, Niokolov Guerassim, and Gene Grand.
The order, issued last year, was meant to prevent him from making any false or defamatory statements against the company or its directors that could damage their reputation.
The company and its directors claim that Ndung’u continued to make slanderous allegations against them, including tax evasion, money laundering, and mismanagement of the company.
They accused him of deliberately trying to bring the company down and damage its reputation, credit, and business integrity.
Justice Sergon agreed with the company and its directors that Ndung’u’s alleged republishing of defamatory statements amounted to contempt of court, and he should be punished accordingly.
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.
As the legal dispute with fellow shareholders continued, Ndung’u and another shareholder Asenath Wachera Maina were ousted from their positions in Pevans East Africa via a special resolution.
