One of Africa’s leading fintech firms, M-KOPA, is at the centre of a legal storm following allegations that it sidelined African employees while favouring foreign investors and expatriate staff in its equity structure.

The lawsuit, filed in Kenya by long-serving employee Elizabeth Njoki, accuses the UK-headquartered company of systematically excluding local staff from meaningful ownership, diluting their equity, and stripping away their voting rights through a controversial share restructuring plan.

According to court documents, the dispute traces back to 2019 when M-KOPA’s board sought to protect international shareholders—including British International Investment, Germany’s DEG, and Generation Investment Management—after a debt-to-equity conversion sparked concerns about potential dilution.

To address this, the company introduced a new class of ‘Growth Shares’ intended exclusively for white and expatriate employees, allegedly leaving out African staff from the scheme. The move reportedly reduced local employees’ ownership from 27% in 2019 to just 2.6% by 2022, according to a report by TechMoran. Over that period, Growth Shares surged to 2.7 million while Preferred Shares rose to 12.6 million.

Njoki, who has taken the matter to court, claims Kenyan staff were deliberately excluded from key meetings and denied access to critical company information. She argues that the restructuring undermined African employees’ stake in the company, in both financial and governance terms.

M-KOPA has not issued a formal public statement but is seeking to have the case dismissed, arguing that the Kenyan courts lack jurisdiction as the company is incorporated in the United Kingdom. The firm contends that any legal dispute over shareholding should be handled by British courts.

However, legal and industry observers say the case could have far-reaching implications for Africa’s tech sector, where foreign capital and offshore incorporations are common. A ruling in favour of Njoki could embolden other African tech workers to challenge opaque equity schemes and advocate for stronger protections. Conversely, a win for M-KOPA may reinforce the legal power held by offshore entities over their African operations and employees.

As the case unfolds, it promises to test the limits of jurisdiction, corporate governance, and equity justice in Africa’s rapidly expanding tech ecosystem.