M-KOPA sued over alleged discrimination against African staff
One of the top fintech companies in Africa, M-KOPA, finds itself embroiled in legal trouble following claims that it has favored foreign investors and expatriate staff while neglecting African employees in its ownership structure.The lawsuit, initiated in Kenya by longtime employee Elizabeth Njoki, alleges that the UK-based company has systematically excluded local workers from substantial ownership, diluted their equity, and removed their voting rights through a contentious share restructuring initiative.
Court filings indicate that the conflict dates back to 2019, when M-KOPA's board aimed to safeguard international shareholders—including British International Investment, German DEG, and Generation Investment Management—after concerns arose regarding potential dilution from a debt-to-equity conversion.
To mitigate this, the company rolled out a new class of ‘Growth Shares’ exclusively intended for white and expatriate employees, reportedly omitting African staff from this scheme. This decision allegedly decreased the ownership of local employees from 27% in 2019 to a mere 2.6% by 2022, as noted in a report from TechMoran. Throughout this period, Growth Shares increased to 2.7 million while Preferred Shares grew to 12.6 million.
Njoki, who has brought the case to court, asserts that Kenyan employees were intentionally left out of crucial meetings and denied access to vital company information. She contends that the restructuring has eroded African employees’ stake in the company, both financially and in terms of governance.
M-KOPA has not released a formal public statement but is pursuing a dismissal of the case, claiming that the Kenyan courts do not have jurisdiction since the company is incorporated in the UK. The firm argues that any legal matters regarding shareholding should be resolved in British courts.
However, legal and industry experts suggest that the outcome of this case could have significant ramifications for Africa’s tech industry, where foreign investment and offshore registrations are prevalent. A ruling in favor of Njoki could inspire other African tech employees to challenge non-transparent equity arrangements and push for improved protections. In contrast, a victory for M-KOPA could strengthen the legal authority of offshore entities over their African operations and workforce.
As the case develops, it is set to test the boundaries of jurisdiction, corporate governance, and equity fairness within Africa’s swiftly evolving tech landscape.
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