Once celebrated as one of Kenya’s bright minds in education technology, Tonee Ndungu now finds himself at the center of a damaging court battle.
A Nairobi businessman has accused the Kytabu founder of masterminding a Sh6.3 million investment scam, alleging that Ndungu’s much-hyped company was nothing more than a front for deception.
The Deal That Went Sour
Court documents show that the investor entered into negotiations with Kytabu Company Limited in January 2025.
Ndungu, the face and co-founder of Kytabu, personally led the talks — presenting the startup as a fast-growing digital education firm looking to expand its footprint across East Africa.
He offered the businessman a 7.5 percent stake in exchange for Sh5 million, under a convertible loan agreement signed on 10 February 2025.
To the investor, it seemed like a sound move. Kytabu had a good name in tech circles and had been featured in media reports as a company changing how students access learning materials.
Between January 31 and February 10, the investor wired the full Sh5 million to Kytabu’s Stanbic Bank account in Karen, Nairobi.
The company, through Ndungu, promised to process the share transfer immediately. The investor submitted all required documents by 20 February 2025, expecting his name to be officially entered into the company’s register.
When Silence Replaced Promises
What followed shocked him.
Kytabu went quiet.
Calls went unanswered, emails ignored, and meetings postponed indefinitely.
“Since advancing the convertible loan and LPO financing to the defendant, the plaintiff has been kept in the dark without any income or involvement in the running of the business,” reads part of the court filing by Mumbi Karoki & Company Advocates.
The investor is now demanding that Kytabu either transfer the promised shares or refund Sh6.3 million, which includes the principal, accrued interest, and legal costs.
Tonee Ndungu: The Rise of a Tech Darling
For years, Tonee Ndungu has been a familiar name in Kenya’s innovation scene.
He co-founded Kytabu in the early 2010s, presenting it as an education-technology platform that would make textbooks and learning content accessible to every Kenyan student via smartphones and tablets.
He was often described as an energetic innovator — articulate, confident, and media-savvy.
Kytabu became a darling of local and international investors, featured in innovation forums, and even cited as an example of African entrepreneurship.
Ndungu frequently appeared at conferences and in interviews, selling his dream of “education equality through technology.”
But behind the glossy image, former associates now whisper that his charisma often masked questionable business ethics.
Several people in the Nairobi tech space say Kytabu’s operations became erratic over the years — with unpaid staff, unfulfilled contracts, and delayed investor reports.
The Cracks Begin to Show
According to insiders, Kytabu struggled to generate sustainable revenue despite flashy branding.
The company’s mobile textbook model faced logistical, licensing, and content acquisition hurdles.
By 2023, the startup had quietly faded from the public spotlight.
Still, Ndungu continued to present it as an active venture — a move that may have convinced new investors, including the current complainant, that the business was still vibrant.
“The way he talks, you believe everything. He sells hope like a professional,” said one person familiar with the Nairobi startup scene. “But when you ask for paperwork or accountability, things get murky.”
Court Battle Looms
Now, the courts will determine whether Ndungu and his company engaged in outright fraud or a failed investment gone wrong.
The businessman insists it was a well-planned con disguised as a legitimate equity deal.
Kytabu, on the other hand, has yet to file any public defence or statement.
If found liable, the case could deal a major blow to Ndungu’s reputation — and send shockwaves through Kenya’s startup community, where investor confidence is already fragile following a series of funding scandals.
The Bigger Picture: Kenya’s Startup Mirage
This case underscores a worrying trend in Kenya’s tech scene — the growing gap between public image and corporate integrity.
Startups often rely heavily on publicity and investor goodwill. Founders become minor celebrities, drawing attention from local and international media. But without proper governance, oversight, and transparency, that fame can quickly turn toxic.
For the complainant, what was meant to be a smart investment into Kenya’s digital education future has turned into a painful lesson — one that may cost him millions and years of legal battles.
As for Tonee Ndungu, the man once hailed as a tech visionary, he now faces a far different reputation — that of a smooth-talking entrepreneur accused of duping investors in the name of innovation.
