Bonto Kenya, a Nairobi fintech offering remittance and foreign exchange services, has shut down less than two years after opening its doors. The firm surrendered its licence to the Central Bank of Kenya (CBK) only months after securing approval.
The company stopped processing transactions on August 15 and asked the regulator to revoke its licence soon after. CBK confirmed the cancellation in a gazette notice effective September 11.
Founder and CEO Yoann Copreaux was frank about the reasons. “FX margins collapsed, breakeven scale became unrealistic,” he wrote on LinkedIn. He added that remittance fees had fallen to almost nothing while compliance costs kept climbing.
Bonto had raised hopes when it received the Money Remittance Provider licence from CBK in early 2025. The approval was meant to give the startup a foothold in a $5.7 billion market. Instead, the company’s journey ended just 18 months in, underscoring how hard it is for new entrants to survive in a sector where M-Pesa, global fintechs, and established banks dominate.
In his statement, Copreaux said older money transfer firms could rely on existing client bases to survive the squeeze. Startups like Bonto, by contrast, were “trying to build in the desert.”
Click to signupThe team explored alternatives, including selling the licence. They contacted more than 50 fintechs and received five offers. None worked when regulator approval timelines and the startup’s monthly losses were factored in. “It was emotionally tough, but closing was the only rational decision by a wide margin,” Copreaux said.
The closure highlights a market paradox. Kenya’s remittance inflows hit record highs last year, yet smaller providers are being pushed out. With fees rapidly declining to zero and compliance rules tightening, only firms with scale or loyal clients can remain afloat.
For Bonto’s founder and team, the plan now is to close operations properly and regroup before moving on to new projects.
