M-KOPA Faces Pressure Over Share Dispute

M-KOPA battles allegations of undervalued share sales as co-founder Chad Larson challenges foreign investor influence and employee rights.

M-KOPA Faces Mounting Pressure as Share Dispute Deepens

Nairobi — Kenyan fintech M-KOPA is facing intense scrutiny after co-founder Chad Larson accused the company of forcing employees to sell shares at a steep discount. Larson says staff were pushed to accept a price nearly 95% below fair value. He has filed a complaint with the Capital Markets Authority (CMA) seeking intervention.

The dispute raises broader questions about governance, employee rights, and foreign investor influence in one of Africa’s most prominent digital lenders.

Larson Claims Employees Were Short-Changed

Larson says M-KOPA structured a buyback that favoured foreign investors, including Sumitomo Corporation and advisory firm Eden Global Partners. He alleges the board ignored conflicts of interest. Several employees reportedly felt they could not seek independent legal advice. Larson wants the CMA to stop the buyback and order a new independent valuation.

“People who built this company are being stripped of their wealth,” Larson said.

M-KOPA Rejects Allegations

M-KOPA denies all claims. The company says Larson resigned in 2018 when it was still loss-making and kept roughly 1% of shares as a minority holder. Executives say he later advised a competitor while publicly criticising the company.

The company adds that the disputed share sales were private UK transactions. They are not under Kenyan regulatory oversight. The CMA confirmed this to Business Daily on 17 November 2025.

“These are voluntary UK transactions between willing buyers and sellers,” M-KOPA said. “The claims are false and appear coordinated.”

The company notes that Larson filed multiple court cases to block Kenyan shareholders from selling shares. Judges rejected his applications and questioned inconsistencies in his evidence. He later withdrew one case after a September 2025 hearing.

Racial Equity Concerns Resurface

The dispute revives earlier grievances. In 2019, former employee Elizabeth Njoki filed a lawsuit claiming expatriate staff received “Growth Shares” while African employees were given weaker “Minor Holder” shares. Court documents show this restructuring sharply reduced African ownership.

Njoki’s lawyer also represents a company linked to Larson. Observers say this raises concerns about coordination between the two matters. Governance analysts note that the case highlights tensions in African startups where foreign capital dominates shareholding structures.

Clash Over Employee Rights

M-KOPA says Larson portrays himself as defending African employees, yet his actions contradict that message. Officials say he tried to block African staff from selling shares during a fundraising round. Some employees tried to join the case but were prevented by Njoki’s legal team.

“He cannot claim to fight for staff while restricting their rights,” a company spokesperson said.

M-KOPA adds that it has grown more than tenfold since Larson left. It now serves over 3 million customers, employs more than 2,000 staff, and works with 40,000 agents. The company has appeared on the Financial Times list of Africa’s Fastest Growing Companies four years in a row.

Legal and Industry Implications

Experts say the case could influence how fintechs in Africa manage employee equity.

“This issue goes beyond M-KOPA,” said analyst Joseph Mwangi. “It tests whether local talent benefits fairly when foreign capital drives expansion.”

Courts will revisit the matter on 19 November 2025. Larson must explain why his case should proceed separately from Njoki’s earlier suit. Judges are expected to examine overlaps between the two matters and decide whether consolidation is appropriate.

For now, M-KOPA says it will continue defending its equity programs, protect employees seeking to sell shares, and raise funds to expand across East Africa.