The SportPesa brand ownership battle has taken a new turn with the Office of the Registrar of Trademarks at the centre of a storm. The latest suit is alleging fraudulent transfer, tax evasion and forgery in the transfer of the gaming giant’s trademark.
Paul Wanderi Ndung’u, a 17% shareholder in Pevans East Africa, the company that brought SportPesa to Kenya in 2014, has filed a case to nullify the transfer of the brand from Pevans to UK-based SportPesa Global Holdings Limited (SPGHL). According to Ndung’u, the transfer valued at £100,000 (Sh17.3 million) per trademark was illegal and marred with irregularities.
Disputed Deeds and Missing Stamp Duty
At the heart of the dispute is a deed of assignment, the legal document that validates the transfer of ownership of a trademark. While filings show the transfer was based on a September 1, 2020 deed, the registrar approved the transaction using a June 2 deed—raising questions about authenticity. Ndung’u says no proper deed was filed and stamp duty was never paid.
“Without stamp duty, the approval and registration of the assignments are null and void,” he said, further arguing that SPGHL, as a non-registered foreign company in Kenya, was not eligible to get a KRA PIN or remit tax.
Shareholder Fallout and Alleged Dilution
The case also highlights the bitter fallout among SportPesa’s original investors. Ndung’u and fellow shareholder Asenath Wachera who held 38% of Pevans, accuse CEO Ronald Karauri of backing the questionable transfer. They also claim their stakes in the UK-based SPGHL were unlawfully diluted from 38% to under 2%.
Ndung’u says the transfer was not approved by shareholders and points out that SPGHL’s financial statements between 2020 and 2023 do not reflect the £200,000 paid for the trademarks. He describes this as evidence that the transaction “lacked commercial authenticity”.
Registrar Accused of IrregularitiesThe Registrar of Trademarks is also accused of backdating certificates of assignment to June 2, 2020, despite receiving the application in September. The office also failed to publish the transfer in the Industrial Property Journal, a requirement meant to allow third parties to raise objections.
“This is a serious offence under the Penal Code, equivalent to uttering false documents and forgery,” said Ndung’u.
Broader Implications for the Gaming Industry
The stakes are high as SportPesa was once Kenya’s biggest betting firm before losing its licence in 2019 over unpaid taxes of Sh21.4 billion. After the transfer, SPGHL allowed Milestone Games—a company linked to Karauri and fellow shareholder Robert Macharia—to use the SportPesa name in Kenya, effectively reviving the brand while cutting ties with Pevans’ tax problems.
The matter is set to be heard before Assistant Registrar of Trademarks Eunice Wainaina, even as Milestone, Pevans, and SPGHL argue that the High Court—not the registrar—has jurisdiction over the dispute.
With accusations of fraud, forgery, and corporate betrayal now in the spotlight, the outcome of this case could reshape not only the ownership of SportPesa but also the governance of intellectual property in Kenya’s lucrative gaming industry.