Sentebale, the charity co-founded by the Duke of Sussex to support children affected by HIV in Lesotho and Botswana, has paused its High Court defamation claim against Prince Harry amid financial difficulties and internal disputes.

The charity initiated legal proceedings against Prince Harry last year, accusing him of orchestrating a "co-ordinated adverse media campaign" that caused operational disruption and reputational damage. However, sources indicate that concerns over the financial impact of the lawsuit have contributed to the case stalling. Sentebale’s income fell by approximately 20 percent following the launch of the claim, raising fears that a costly court defeat could jeopardize the charity’s future.

Financial reports reveal that Sentebale’s income declined from around £2.5 million in 2024 (adjusted for a 12-month period) to just over £2 million in 2025. The decrease was largely attributed to lower event income, reduced gifts in kind, and diminished donations from trusts and foundations. Income from events, which had contributed £715,000 in 2024, dropped sharply to £70,000 the following year—a change likely linked to the discontinuation of the high-profile polo tournaments traditionally hosted by Prince Harry. Income from trusts and foundations fell from £221,000 to £85,000, while funding from institutional sources decreased from £1.7 million to £1.2 million. Net assets also dropped from £567,000 at the end of 2024 to £250,000 at the end of 2025, with general reserves showing a slight deficit.

The lawsuit emerged amid internal conflict at Sentebale, which led to the resignations of Prince Harry, fellow co-founder Prince Seeiso of Lesotho, and the entire board of trustees in 2023. The dispute was triggered by disagreements with Sophie Chandauka, the charity’s chairman, over fundraising strategy and financial management. Chandauka accused the former trustees of abuse of power, bullying, misogyny, and harassment, and criticized the charity as a "vanity project" that leveraged media influence for personal ends. The Charity Commission later reprimanded all involved for allowing the dispute to spill into the public domain but found no evidence to support the allegations of misconduct.

The commission has since launched an ongoing investigation into Sentebale’s governance. Carmel Gaillard, the charity’s global executive director, stated in the annual report that the regulator's scrutiny has laid "a clear basis for strengthening governance," which the charity is taking seriously.

Community leaders in Lesotho, including Khoabane Theko, principal chief of Thaba-Bosiu, have expressed concern that the legal battle may be undermining the charity’s core work. Theko described the court action as “self-indulgent” and warned it risked disrupting programmes amid already stalled operations.

Prince Harry has indicated a willingness to proceed to trial to defend his reputation. If the case moves forward, and the Duke succeeds, Sentebale could be responsible for covering legal costs incurred by both parties, potentially compounding the charity’s financial challenges. Both sides have agreed to extend deadlines related to the defense filings, keeping the specifics of the defamation claim confidential for the time being.