Kenyan Remittance Startup Bonto Shuts Down Eight Months After Securing CBK Licence

In a surprising turn for Kenya’s fintech sector, remittance startup Bonto Kenya Money Transfer Limited has shut down operations less than a year after receiving its licence from the Central Bank of Kenya (CBK).

The company, founded in December 2022 by entrepreneur Yoann Copreaux, had positioned itself to capture a slice of Kenya’s lucrative cross-border payments market. Yet, despite achieving the regulatory milestone many fintechs struggle to reach, Bonto announced that it ceased processing transactions on August 15, 2025, and formally requested CBK to revoke its licence, which was gazetted effective September 11, 2025.

Why Bonto Exited the Market

Bonto’s closure highlights the challenges of competing in Kenya’s remittance and foreign exchange (FX) ecosystem. Several factors contributed to the decision:

1. Shrinking FX margins
   The profit spread on currency conversions, which many remittance companies rely on, has collapsed in recent years. This made it difficult for Bonto to sustain revenue from transactions.

2. Low remittance fees
   Competitive pressure in Kenya’s remittance market has driven transaction fees to near zero. While this benefits customers, it undermines the ability of smaller fintechs to cover costs.

3. High compliance costs
   Regulatory compliance, particularly with anti-money laundering (AML) and know-your-customer (KYC) rules placed a heavy financial and operational burden on Bonto. Unlike larger incumbents, the startup lacked the scale to absorb these expenses.

4. Limited transaction volumes
   Bonto was unable to achieve the scale necessary to offset thin margins and rising fixed costs. Attempts to sell its CBK licence attracted offers from five potential buyers, but none of the deals proved viable within the regulatory timelines.

Lessons from the Shutdown

Bonto’s exit underscores a recurring theme in Africa’s fintech landscape: licensing alone does not guarantee survival. Securing a CBK licence is often viewed as a major milestone, but the economics of remittances are unforgiving for small entrants.

• Margins are fragile: Currency spread volatility and fee competition erode profitability.

• Compliance is expensive: Regulatory overhead weighs disproportionately on early-stage companies.

• Scale is everything: Without significant transaction volume, covering fixed and compliance costs becomes impossible.

• Timing matters: Market shifts and regulatory delays can rapidly shorten a startup’s runway.

The Bigger Picture

Kenya remains a critical hub for remittances in Africa. In 2024 alone, remittance inflows reached KSh 884.6 billion (US$5.77 billion), according to CBK. That scale has drawn global players, banks, and mobile money giants like M-Pesa, all of whom enjoy advantages in infrastructure, trust, and customer acquisition.

For newer startups, the challenge is differentiating beyond just low-cost transfers. Many industry observers argue that the future lies in bundling remittance with value-added services such as savings, credit, or investment options, creating ecosystems that deepen customer relationships rather than competing purely on fees.

Conclusion

Bonto’s short-lived journey is a reminder of the razor-thin economics of remittance startups. It reflects the harsh reality that while the African cross-border payments market is massive and still growing, survival depends on more than regulatory approval and good intentions. Scale, innovation, and financial resilience remain the decisive factors in navigating one of fintech’s toughest arenas.