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

Bonto, a Nairobi-based remittance fintech startup, has officially ceased operations. It shut down two years after launching and less than eight months after receiving its licence from the Central Bank of Kenya (CBK).

Bonto founder and CEO Yoann Copreaux announced via a LinkedIn post, that the startup, which specialised in remittances and foreign exchange services, stopped processing transactions on August 15 and soon after requested the revocation of its licence. The CBK confirmed the revocation last week, marking the official end of Bonto’s short-lived journey.

According to Yoan Copreaux, the decision to close the startup came after a series of operational and market challenges that made the business unsustainable. He further noted that, FX margins collapsed, making the breakeven scale unrealistic. In addition, remittance fees remained low or virtually non-existent, while compliance requirements continued to rise, particularly affecting Money Remittance Providers (MRPs).

Unlike established MRPs that could rely on legacy clients, Bonto was essentially “building in the desert,” a far more challenging task. Efforts to sell the licence were also unsuccessful. Bonto reached out to over 50 fintech companies, signed multiple NDAs, and received five offers. However, none were viable when factoring in CBK approval timelines and the monthly financial losses the company would incur while waiting for a transfer.

“Closing was an emotionally tough decision, but ultimately it was the only rational path forward,” the CEO stated, emphasizing that continuing operations would have only deepened losses. Despite the setback, Bonto expressed deep gratitude to its stakeholders. The company thanked its clients and partners for their support and recognized the dedication of its team.

As part of the shutdown process, Bonto is offering its CBK-approved office space and a Canadian MSB licence to interested parties. The company’s founder acknowledged the personal toll of the closure but emphasized the importance of taking time to reset before embarking on the next venture.

Before the shutdown, Bonto was a Nairobi-based fintech startup specializing in foreign exchange (FX) services and money remittances, primarily targeting cross-border transfers to and from Kenya. Founded in 2022, it positioned itself as a tech provider in Kenya’s competitive remittance market, aiming to offer competitive FX rates and efficient transfer solutions for businesses and individuals.

The Nairobi-based remittance fintech startup, aimed to differentiate itself in Kenya’s competitive remittance market through innovative offerings focused on efficiency, transparency, and user-centric design.

These include;

1. Competitive FX Rate Platform

Bonto provided a digital platform offering real-time, competitive foreign exchange (FX) rates for cross-border transfers, particularly for USD-KES and other major currency pairs. The platform prioritized transparency, displaying live rates to help users avoid hidden fees common in traditional remittance services.

Unlike larger incumbents (e.g., Western Union or banks), Bonto’s lean, tech-driven model aimed to minimize overheads, passing savings to users through tighter spreads.

2. Low-Cost Remittance Model

Bonto targeted near-zero or significantly reduced fees for remittances, challenging the high costs of legacy providers. This was particularly appealing for small and medium-sized businesses (SMBs) and individuals sending frequent, smaller transfers. The company leveraged software to streamline operations, reducing the need for physical infrastructure, which allowed it to compete with giants like M-Pesa or WorldRemit on cost.

3. Focus on Digital-First Experience

Bonto offered a fully digital interface, likely accessible via a mobile app or web platform (bonto.africa), designed for seamless onboarding and transfers. This catered to Kenya’s tech-savvy population and diaspora communities. The platform emphasized user experience, with features like instant transfer confirmations and easy tracking, addressing pain points in traditional remittance processes.

4. Tailored Solutions for SMBs

Bonto positioned itself as a partner for small businesses engaged in cross-border trade, offering tools to manage FX risks and optimize international payments. This was a niche focus compared to competitors focusing on individual consumers. It aimed to support Kenya’s growing SME sector by providing affordable access to global payment networks.

5. Regulatory Compliance as a Strength

After securing its Money Remittance Provider (MRP) license from the Central Bank of Kenya in January 2025, Bonto marketed its compliance as a trust factor, ensuring secure and regulated transactions in a market wary of fraud. Its adherence to CBK’s stringent standards allowed it to build credibility, even as a small player.

While innovative, Bonto’s offerings faced headwinds in a saturated market. The low-fee model, while attractive, was unsustainable due to collapsing FX margins and rising compliance costs, as noted by CEO Yoann Copreaux.

Bonto’s innovations highlighted the potential for tech-driven remittance solutions in Kenya but also exposed the market’s structural barriers. The startup exit underscores broader challenges for Kenya’s fintech remittance space, while inflows grew, smaller firms face viability issues amid competition and costs.