Milestone Games Ltd, the holding company behind the SportPesa brand in Kenya, has undergone significant ownership changes over the past four years, culminating in a UAE-registered firm acquiring a substantial stake.

Business Registration Service (BRS) records reveal that Commtech Consortium Ltd, a relatively unknown company incorporated in March 2023 and registered in the UAE, now owns 2,500 shares in Milestone Games. This represents a 25 percent stake, making Commtech the second-largest shareholder after Techglow Ltd, another UAE-registered entity holding 54 percent.

The shifts have drastically reduced the shares of original Kenyan stakeholders, including businessman Robert Macharia and Ronald Karauri, whose holdings have dropped to 0.75 percent and 3.0 percent respectively, from previous stakes of 71 percent and 13.4 percent.

Opaque Ownership and Regional Context

Techglow is registered in Ras Al Khaimah, one of the seven emirates in the UAE, where company ownership details are not publicly disclosed, making the ultimate beneficiaries difficult to identify. Public sources provide no further information on Techglow’s operations or ownership.

Related Ownership Changes in Digital Health Sector

Separately, Commtech Consortium has exited its 22.5 percent stake in Konvergenz Network Solutions, a company involved in delivering Kenya’s Social Health Authority’s digital platform under a Sh104.8 billion contract. This stake now belongs to UAE-based Starway Trading Ltd, though it remains unclear whether this reflects a sale or an internal restructuring among related offshore entities.

SportPesa’s Market Position and Industry Trends

SportPesa has experienced a resurgence following a 2019 exit due to tax disputes and regulatory challenges. The betting sector in Kenya has boomed, with wagers totaling Sh330.5 billion in the year to June, far exceeding other major investment activities on the Nairobi Securities Exchange.

This growth coincides with a reduction in excise duty on betting from 15 percent to 5 percent, which has encouraged increased gambling activity despite concerns over addiction and regulatory pressures.

Key Shareholders and Historical Background

  • Milestone Games’ two main shareholders are Commtech Consortium (25%) and Nob Five Ltd (75%).
  • Nob Five’s shareholders include Techglow, Robert Macharia, Ronald Karauri, James Ngengi Muigai (related to former President Uhuru Kenyatta), and White Hart Ltd, owned by businessman Tom Waireri Thuo.
  • Benard Chauro Matoke is listed as the sole director of Milestone Games but holds no shares.

SportPesa’s ownership has evolved through complex transfers involving UK-based SportPesa Global Holding Limited and Pevans East Africa, reflecting ongoing corporate restructuring amid regulatory and tax challenges.

Industry Outlook

Kenya leads Africa in sports betting participation, with 64 percent of respondents in a recent GeoPoll survey having placed bets on football in the past year, outpacing Ghana and South Africa. As the sector grows, governments across Africa are balancing tax policies to manage addiction risks while maintaining revenue streams.