Not long ago, Tonee Ndungu was hailed as one of Kenya’s brightest tech innovators — a charismatic entrepreneur using technology to reshape education through his startup, Kytabu. Today, that image is under serious strain as he faces a court case that accuses him of deception, broken promises, and a multimillion-shilling investment gone missing.
According to court documents filed in Nairobi’s High Court, a businessman is accusing Ndungu and Kytabu of swindling him out of Sh6.3 million through what he calls a “well-orchestrated share transfer scam.”
It all began in January 2025. Kytabu, once seen as a rising star in Kenya’s digital learning space, approached the investor for funding. Ndungu reportedly pitched a compelling vision and offered the businessman a 7.5% stake in the company in exchange for a Sh5 million investment.
The agreement was formalized on 10 February 2025 via a convertible loan deal. The investor wired the full amount into Kytabu’s Stanbic Bank account, expecting the company’s lawyers to update its shareholding records.
Despite submitting all required paperwork by 20 February, the investor claims communication from Kytabu dried up almost immediately. His emails and calls went unanswered. Months passed with no updates — no share certificates, no business engagement, no returns.
In court filings, his lawyers say he’s been “kept in the dark” ever since, with no involvement in the business and no explanation for the silence.
Now, the investor wants the court to either force Kytabu to issue the agreed shares — or refund the full amount, with interest and legal costs.
To many in Kenya’s tech scene, Ndungu is a familiar name. He made his mark in the early 2010s with Kytabu, an edtech platform that promised to revolutionize access to learning materials through mobile and digital tools.
He was a regular on the innovation circuit — from TEDx stages to education conferences — often sharing how his struggles with dyslexia inspired him to reimagine how students learn.
Kytabu quickly became one of the most talked-about startups in Nairobi, attracting attention from investors and policy makers alike.
But behind the public image, there were warning signs. Former employees and partners now say the company was often financially shaky, relying on fresh investor money to stay afloat. Some describe Ndungu as visionary but erratic — someone whose charm sometimes masked poor governance and a lack of transparency.
This latest case appears to follow a worrying pattern: big promises to investors, with little clarity about the company’s true financial health.
The investor claims he was misled into thinking he was joining a thriving enterprise — only to discover he might have been used to plug short-term cash flow gaps.
By mid-2025, the investor says all attempts to recover his money or get updates from the company had failed. Left with no other option, he turned to the courts.
Through his lawyer, he argues the case isn’t just about his lost millions — it’s about accountability in Kenya’s startup space.
“We have to stop treating innovation as a cover for fraud,” his lawyer said.
For Tonee Ndungu, this isn’t just a lawsuit — it’s a major test of his legacy. Once a poster child for Kenya’s innovation economy, he’s now facing serious questions about leadership, integrity, and whether Kytabu ever lived up to the hype.
He has yet to respond publicly to the claims. But for the investor, the silence says it all. What started as a bet on the future of education in Kenya may end as a painful — and expensive — lesson.
