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M-KOPA Co-founder Alleges the Board is Engaging in Share Price Manipulation
Chad Larson, the co-founder of M-KOPA, has come forward with serious accusations against the company’s board, claiming they’re manipulating the share price. He officially filed a complaint with the Capital Markets Authority (CMA), pointing fingers not only at the board but also at major investor Sumitomo Corporation and the advisory firm Eden Global Partners. According to Larson, these players are involved in a share price manipulation scheme tied to a buyback deal that seems to take advantage of Kenyan employees.
In a letter dated November 6, 2025, addressed to CMA’s CEO Wyckliffe Shamiah, Larson detailed how the buyback offered shares to employees at a price that’s about 95% lower than what M-KOPA’s shares are truly worth in the market. He called this a huge violation of fiduciary duty, saying it unfairly benefits Sumitomo and Eden Global because they get commissions deducted from the money that should go to local shareholders.
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This led Larson to ask the CMA to halt the transaction immediately, dig deep into potential conflicts of interest, and order a fresh, independent valuation by someone approved by the regulator.
He specifically pointed out a conflict of interest involving Eisuke Takenaka, Sumitomo’s representative on the board. Larson says Takenaka was part of decisions that could personally benefit Sumitomo, which goes against Kenya’s corporate governance rules. These rules require board members to avoid situations where their decisions clash with shareholder interests.
Moreover, Larson criticized M-KOPA for keeping employees in the dark about the buyback deal. Workers were allegedly told not to discuss the buyback with each other or seek outside legal advice. And those who owned fewer than 500 shares, labeled as minor shareholders, were left out of important meetings and weren’t given access to company notices or minutes. Larson says these moves isolate employee shareholders and stop them from working together to evaluate if the buyback is fair.
All of this is happening while M-KOPA is reporting strong financial results. The company made its first annual profit in 2024, about $9.2 million (KSh 1.2 billion), after a 66% jump in revenue to $416 million (KSh 53.7 billion). M-KOPA’s services, like pay-as-you-go smartphones and solar financing, are now running in five African countries, and it has handed out more than $1.5 billion in credit so far.
Larson’s allegations draw attention to a clash between the company’s rapid financial success and the need for corporate responsibility. Should these claims hold up, this case might change how Kenya watches over share buybacks in private tech firms and could impact how investors view the market across the region.
So far, M-KOPA hasn’t responded to any of these accusations.
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