Bonto Kenya, a fintech remittance startup, has officially shut down operations less than eight months after receiving its Central Bank of Kenya (CBK) license.
Driving the news
- The company stopped processing transactions on August 15 and soon after requested a license revocation. CBK confirmed the shutdown last week.
- Founder Yoann described the decision as “emotionally tough, but the only rational one.”
Why it matters
Bonto’s exit underscores the difficulties facing new entrants in Kenya’s competitive remittance market, where margins are tight and regulatory compliance costs are mounting.
Reasons for the shutdown
- FX margins collapsed, making breakeven scale unrealistic.
- Remittance fees remained low or non-existent.
- Compliance requirements tightened, leaving smaller money remittance providers (MRPs) at a disadvantage.
- Larger MRPs could survive on legacy clients, but Bonto was “trying to build in the desert.”
Why not sell the license?
- The team approached 50+ fintechs and signed NDAs, receiving five offers.
- None were viable after factoring in CBK approval timelines and monthly losses before transfer.
What’s next
- Completing the wind-down process, including potentially selling a CBK-approved office space or a Canadian MSB license.
The bottom line
Bonto’s closure highlights the tough realities of scaling fintech in Africa’s remittance sector — even with regulatory approval, timing and margins can make or break a startup.
