Kenyan Remittance Startup Bonto Shuts Down After Two Years, Citing Harsh Market Pressures

Bonto Kenya Money Transfer Limited, a Nairobi-based fintech specializing in remittances and foreign exchange, has ceased operations just two years after its launch, underscoring the brutal challenges facing smaller players in Kenya’s fiercely competitive fintech landscape. The Central Bank of Kenya (CBK) officially revoked Bonto’s license on September 11, 2025, following the company’s decision to halt transaction processing on August 15 and request license surrender, as confirmed by CBK Governor Kamau Thugge under Regulation 44(2) of the Money Remittance Regulations, 2013.

Founder and CEO Yoann Copreaux laid bare the reasons for the closure in a candid LinkedIn post, pointing to collapsing foreign exchange (FX) margins, near-zero remittance fees, and escalating compliance costs that rendered profitability unattainable. “FX margins collapsed, breakeven scale became unrealistic,” Copreaux noted, adding that Bonto was “trying to build in the desert” without the entrenched client networks of legacy players like Western Union, MoneyGram, or newer entrants like Sendwave and M-PESA, which commands a 90.8% mobile money market share in Kenya.

Despite exploring a sale of its CBK license and securing five offers after contacting over 50 fintechs, Bonto found no viable path forward due to lengthy regulatory approval timelines and ongoing monthly losses. “It was emotionally tough, but closing was the only rational decision by a wide margin,” Copreaux admitted. The shutdown reflects a broader trend of consolidation in Kenya’s remittance market, where 2024 saw $5.77 billion in inflows but smaller firms struggle against dominant players offering broader networks and lower fees.

Bonto’s exit, alongside other recent Kenyan fintech closures like Privpay and Raise, highlights the high stakes for startups navigating regulatory hurdles, intense competition, and thinning margins in Africa’s tech hub, where even CBK approval is no guarantee of survival.