Nairobi-based fintech Bonto Kenya has officially shut down operations less than eight months after securing a licence from the Central Bank of Kenya (CBK). The decision, confirmed by the regulator last week, brings an abrupt end to the startup’s attempt to establish itself in the country’s highly competitive remittance and foreign exchange market. The closure underscores the mounting challenges facing new entrants in an industry where margins are thinning and compliance costs are rising.
Regulatory Approval and Swift Exit
Bonto received its money remittance licence from the CBK earlier this year, a milestone that positioned it as a regulated player in Kenya’s financial ecosystem. Despite this achievement, the company ceased processing transactions on August 15 and subsequently requested that its licence be revoked. CBK Governor Kamau Thugge confirmed the revocation in a public notice, citing compliance with the 2013 money remittance regulations.
Market Conditions Proved Unforgiving
Founder and CEO Yoann Copreaux explained that the business could not withstand collapsing foreign exchange margins, negligible remittance fees, and escalating compliance requirements. These pressures meant that reaching breakeven scale became unattainable within the short time frame. While older money remittance providers can rely on longstanding client bases, Bonto struggled to attract sufficient traction, which Copreaux described as “trying to build in the desert.”
Attempts to Salvage Operations
Before deciding to close, Bonto explored selling its licence to other fintechs operating in the region. The team reached out to over 50 companies, signed non-disclosure agreements, and received five offers. However, the extended approval timelines from the CBK combined with the ongoing financial losses made each option impractical, leaving closure as the only viable path forward.
Emotional but Rational Decision
In a candid LinkedIn post, Copreaux acknowledged that shutting down was emotionally challenging but ultimately a rational business decision. He expressed gratitude to clients, partners, and his team, highlighting the dedication of colleagues who worked tirelessly to build the platform. He also credited his family for their support throughout what he described as another rollercoaster entrepreneurial journey.
Wider Implications for Kenyan Fintech
Bonto’s exit highlights the shifting realities of Kenya’s fintech landscape, where regulatory compliance no longer guarantees sustainability. With global remittance providers pushing transaction fees downward and FX spreads continuing to shrink, smaller players face increasingly narrow margins. The episode illustrates that while licensing provides legitimacy, market dynamics and timing remain decisive factors for survival.
Looking Ahead
For Copreaux, the immediate priority is to ensure a proper wind-down of the business, including securing the company’s obligations to partners and clients. He has hinted at taking a break before considering new ventures, emphasizing the importance of learning from the experience. “The learnings are real — about timing, resilience, and markets — and I’ll carry them into whatever comes next,” he noted.
Bonto Kenya’s rapid rise and fall encapsulates the volatility and unforgiving nature of fintech markets in emerging economies. Despite securing regulatory approval and setting out with ambitious plans, the company succumbed to macroeconomic pressures and structural market challenges. The shutdown serves as both a cautionary tale and a reminder of the resilience required to navigate Africa’s rapidly evolving financial services sector.