M-KOPA Share Manipulation Claims Rock African Tech News
The African technology sector is abuzz following serious allegations leveled against M-KOPA, a prominent name in the continent’s tech landscape. Chad Larson, a co-founder of M-KOPA, has formally lodged a complaint with Kenya’s Capital Markets Authority (CMA), accusing the company’s board, its significant investor Sumitomo Corporation, and advisory firm Eden Global Partners of orchestrating share price manipulation. These allegations center around a recent share buyback transaction that Larson claims unfairly disadvantages Kenyan employees.
In a detailed letter dated November 6, 2025, addressed to CMA Chief Executive Officer Wyckliffe Shamiah, Larson outlined his concerns regarding the buyback process. He asserts that the shares offered to employees in this scheme were valued at a staggering “95% discount” compared to M-KOPA’s actual market worth. Larson characterized this arrangement as a blatant breach of fiduciary duty, alleging that it unfairly benefits Sumitomo and Eden Global Partners. According to his complaint, these entities profited through commissions deducted from the proceeds that were intended for local shareholders. Larson has urged the regulator to intervene promptly, calling for the immediate suspension of the transaction. Furthermore, he has requested a thorough investigation into potential conflicts of interest and demanded that the CMA mandate a new, independent valuation of the company’s shares by an approved assessor.
This development highlights critical aspects of corporate governance and employee equity within the rapidly expanding African tech ecosystem. The complaint underscores the importance of transparent and fair practices, particularly when dealing with employee share schemes in high-growth companies like M-KOPA. The Capital Markets Authority’s response will be closely watched, as it could set significant precedents for investor protection and ethical conduct in Kenya’s burgeoning tech industry.
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