DISPUTE

Paybill numbers, SMS codes at centre of Sportpesa fight

A shareholder has accused partners of violating court orders

In Summary

• The codes and paybill numbers were preserved by a judicial review court following a petition filed by Paul Ndung'u's business partner Asenath Wachera.

• Justice Anthony Ndung’u issued a temporary order suspending the licence issued to Milestone Games Ltd.

Businessman Paul Ndungu during a press briefing in Nairobi, Tuesday October 4, 2022.
Businessman Paul Ndungu during a press briefing in Nairobi, Tuesday October 4, 2022.
Image: MOSES ODHIAMBO

SportPesa short message service code and paybill numbers are at the centre of a new scuffle to control the betting firm's billions.

Nairobi businessman Paul Ndungu, an aggrieved shareholder of one of the betting companies, has accused his partners of disobeying a court order which suspended the use of the codes and SportPesa brand.

The Short Message Service code 79079, and paybill numbers 955700 and 955100 were preserved by a court in an application for judicial review by Paul’s business partner Asenath Wachera.

The High Court on September 19 quashed the decision of the Betting Control and Licensing Board (BCLB) permitting Milestone Games to operate in Kenya. 

Justice Anthony Ndung’u issued a temporary order suspending the licence issued to Milestone Games to use the SportPesa name until the matter is heard and determined. 

The hearing is scheduled for October 24.

"It is hereby ordered that leave be so granted to operate as a stay of implementation and thereby suspend the operation and use of the impugned bookmakers name licence number 0000448 issued to Milestone Games Limited to trade as SportPesa pending the hearing and determination of the substantive judicial review application,” judge Ndung'u said. 

Paul’s claim is that the paybill numbers and short codes are still in use by Milestone Games in disregard of the court order.

He told journalists on Tuesday that he (Paul) is heading to court to seek contempt orders against Milestone Games Ltd for the continued operation of the codes. 

Contacted, SportPesa CEO Ronald Karauri said, “There are other existing orders which restrict BCLB or Safaricom from interfering with the business, which is beyond our control.” 

Milestone Games was granted a license to operate SportPesa in mid-August 2022 amid protests by the aggrieved shareholders that the firm obtained the license irregularly.

The licence was previously held by Pevans East Africa Ltd, where Paul and Wachera are major shareholders, each owning 17 per cent and 21 per cent stake respectively.

In her application, Wachera stated that the deal which allowed Milestone Games to use SportPesa brand was not backed by Pevans East Africa board.

“The regulator acted unreasonably and in breach of the law governing betting," Wachera stated in her application, further holding that the license was issued under unclear circumstances.

BLCB gave license number 0000448 to Milestone Games Ltd to operate and trade as SportPesa. The license was to last until the year ending June 30, 2023.

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