The Sh6.3 Million Tech Scam: How Kytabu Founder Tonee Ndungu Allegedly Conned a Nairobi Investor
They say not every tech genius in Nairobi is what they seem.
And now, one of Kenya’s most famous startup faces, Tonee Ndungu, the man behind education app Kytabu, is on the spot after a businessman accused him of running a multi-million shilling share scam.
According to fresh court filings, Ndungu and his company Kytabu Company Limited are being sued for Sh6.3 million in what the complainant describes as a well-coordinated fraud masked as an investment opportunity.
How It Started
The story begins in January 2025, when Kytabu approached the businessman looking for new investors.
Tonee Ndungu, known for his charm, smooth talk, and high-level contacts, reportedly convinced the man that Kytabu was scaling up its digital learning business and needed quick capital.
After a few meetings, the two agreed that the businessman would invest Sh5 million for a 7.5 percent stake in the company.
A convertible loan agreement was signed on 10 February 2025, and by February 10, the investor had already wired the full amount to Kytabu’s Stanbic Bank account in Karen.
Everything seemed official.
Receipts, documents, and legal letters were exchanged. Kytabu’s management assured the investor that his shares would be reflected in the company’s records within days.
Then came the silence.
The Disappearing Act
Weeks turned into months, and every follow-up attempt hit a dead end.
Emails went unanswered. Calls were ignored. Meetings were postponed.
The investor says Ndungu and his team neglected, failed, and refused to honor the deal or refund the money.
By July 2025, the frustrated businessman filed a lawsuit through Mumbi Karoki and Company Advocates, seeking a refund of Sh6.3 million plus interest and costs.
“Since advancing the convertible loan and LPO financing, the plaintiff has been kept in the dark with no income, updates, or involvement in the company,” reads part of the court filing.
Who Is Tonee Ndungu
If you have followed Kenya’s tech scene, you have heard his name.
Tonee Ndungu was once celebrated as a visionary, the guy who founded Kytabu, an app that promised to make textbooks and learning materials available digitally to every Kenyan student.
He spoke passionately about education equality, often referencing his own learning challenges.
He was featured on local and international media, graced tech panels, and interacted with major players in government and innovation circles.
But as many in the tech ecosystem now whisper, behind the speeches was a pattern of failed deals, unpaid collaborators, and exaggerated success stories.
Kytabu, which once rode on hype and donor funding, has quietly faded from the market, and now it is in the headlines for all the wrong reasons.
From Innovation to Accusation
The court case exposes a bigger problem. Kenya’s startup ecosystem is full of founders who survive more on image than business performance.
They know how to pitch, get media coverage, and attract money, but few deliver.
In this case, the investor says he was simply the latest victim of a shiny story gone sour.
He believed he was joining one of Kenya’s tech success stories, only to find himself chasing emails and lawyers months later.
If the court sides with him, Ndungu could be ordered to pay back the full amount plus damages.
But even before that happens, the damage to his public image may already be done.
The Bigger Question
How many more Tonees are out there?
How many startups in Kenya are using innovation to mask poor governance, fake valuations, or outright scams?
This case has opened a new conversation in the tech world. That investors, donors, and even journalists must stop glorifying founders without asking the hard questions.
Because for one Nairobi businessman, the dream of supporting digital education has turned into a nightmare worth Sh6.3 million.