Over the years, we have amplified a series of troubling issues surrounding M-KOPA, a UK-headquartered fintech firm that promises affordable smartphones and solar products to low-income earners through its micro-loan model. A whistleblower reveals M-KOPA’s toxic partnership with outsourcing firms iSON and CCI, exposing mistreatment of employees through low pay and overwork, under CEO Jesse Moore's leadership.
Our course into exposing these issues began in September 2024, when we reported on a Tax Appeals Tribunal ruling that mandated M-KOPA Holdings to pay Ksh 885 million in taxes in Kenya.
The company had argued it should be exempt from local taxes under the Kenya-UK Double Taxation Treaty, claiming its incorporation in the United Kingdom shielded it from such obligations.
The tribunal rejected this defense, determining that M-KOPA’s core management decisions are made in Kenya, making the firm fully liable for local taxes.
This ruling set the stage for deeper analysis of the company’s financial operations.
By October 2024, we delved into a Ksh 308.5 million tax dispute between M-KOPA and the Kenya Revenue Authority (KRA), which had first surfaced in 2016 with an initial demand of Ksh 308,512,947, later revised to Ksh 193,736,915. UK-Headquartered Fintech Firm M-Kopa Caught in Ksh 300m Tax Evasion Scandal Solar energy provider M-Kopa finds itself in the middle of a turbulent period, with issues surrounding tax compliance and financial operations taking centre stage at the company led by CEO Jesse Moore… pic.twitter.com/O7swtIkC0u — Cyprian, Is Nyakundi (@C_NyaKundiH) October 13, 2024 M-KOPA attributed its tax liability to unpaid debts from over 47,000 customers who had acquired solar kits on credit, claiming that recovering these debts would cost Ksh 952.5 million, nearly triple the debt value.
The company estimated that pursuing each defaulter through the courts would cost Ksh 109,640 per case, while out-of-court settlements would amount to Ksh 1.77 billion.
Industry insiders challenged these figures, estimating the actual number of defaulters at fewer than 20,000, less than half of M-KOPA’s reported count.
Further investigations revealed that M-KOPA had included customers who purchased electric bikes on credit in its debtor records, a move that appeared to artificially inflate its losses.
KRA accused M-KOPA of making minimal efforts to recover the debts, instead using the situation as a pretext to evade tax obligations.
In January 2025, our focus shifted to the treatment of M-KOPA’s employees, particularly those in its warehouses, many of whom are outsourced through agencies like Sheer Logic. M-Kopa Workers Expose Abysmal Working Conditions as KRA Battles Firm Over Ksh 308.5m Tax Dispute Employees at a UK-based solar energy firm that arrived in the country with much fanfare are now lamenting gruelling shifts, poor pay and constant harassment.
According to… pic.twitter.com/Vu46dGzX5d — Cyprian, Is Nyakundi (@C_NyaKundiH) January 12, 2025 We also reported on workers enduring grueling shifts, reporting at 7:00 a.m. and leaving at 7:00 p.m., with no compensation for the extended hours.
Two days later, on January 14, more detailed accounts emerged. Outsourced Workers at M-Kopa Decry Unpaid Overtime and Grueling Shifts Following our earlier coverage of escalating complaints from employees contracted by labour outsourcing firm 'Sheer Logic' to work for affordable solar energy solutions provider 'M-Kopa', fresh reports… pic.twitter.com/hvKp47gzff — Cyprian, Is Nyakundi (@C_NyaKundiH) January 14, 2025 Workers revealed they were contracted for 8-hour shifts at Ksh 740 per day but were forced to work 9 hours, with night shift employees enduring 12-hour shifts from 7 p.m. to 7 a.m., also without overtime pay.
A whistleblower from the warehouse described a toxic environment fostered by a manager who bullied staff, publicly humiliated them by calling them “pigs,” and even spilled tea on a colleague in a fit of rage.
This manager was also accused of promoting female employees based on personal relationships rather than merit, creating a hostile atmosphere for others.
Employees reported health and safety issues, such as injuries to their hands, eyes, and backs due to poor working conditions, but their compensation claims were denied due to their contract status.
Despite multiple complaints to upper management, no action was taken, leaving workers feeling powerless and resentful. M-Kopa Warehouse Workers Lament Harassment, Unfair Promotions and Safety Hazards More reports concerning affordable solar energy solutions provider "M-Kopa" continue to emerge, further exposing challenges within the company’s operations, where both customers and staff are… pic.twitter.com/UkypQt5TqS — Cyprian, Is Nyakundi (@C_NyaKundiH) January 14, 2025 By March 2025, we turned our attention to M-KOPA’s treatment of its customers, revealing a pattern of predatory practices.
We shared the story of a client who had fully paid for their smartphone but found that M-KOPA refused to unlock the device, citing a “company policy” that required their proprietary software to remain installed for an additional year.
The client, frustrated by this hidden condition, questioned why the company continued to control a device they had fully paid for. Financial Firm M-Kopa Under Fire Again for Holding Devices Hostage After Payment Micro-loan-based digital retailer is once again at the centre of a dispute after a client who completed payments for a smartphone found that the company had refused to remove the device from its… pic.twitter.com/AXNryl2cn8 — Cyprian, Is Nyakundi (@C_NyaKundiH) March 23, 2025 The following day, on March 24, another customer came forward, reporting that their phone became unusable just two weeks after clearing their final installment. M-KOPA Clients Say Phones Became Unusable Weeks After Completing Payments Hours after our most recent report exposed growing complaints from M-KOPA customers who claim the company disables devices remotely once payments are completed, another customer has come forward alleging… pic.twitter.com/HjjuIiPiIx — Cyprian, Is Nyakundi (@C_NyaKundiH) March 24, 2025 This customer suspected the device was remotely disabled in retaliation for declining a new loan offer from M-KOPA.
When they sought assistance, M-KOPA stated the phone was out of warranty, offering no solution.
Days later, yet another a source shared a similar experience involving their nanny, whose Samsung phone stopped working a week after her final payment, also after she declined a new loan and an additional phone offer. M-KOPA in the Spotlight Again as Another Customer’s Phone Stops Working After Final Loan Repayment UK-headquartered fintech firm M-KOPA, known for its micro-loan model targeting low-income earners with smartphones and solar products, is once again at the centre of controversy… pic.twitter.com/fLz04ZPkvt — Cyprian, Is Nyakundi (@C_NyaKundiH) March 27, 2025 The device displayed an Android recovery screen with error messages, and attempts to reboot it were futile, returning to the same screen.
The source noted that the phone had been in perfect condition during the repayment period but M-KOPA’s response was to tell the nanny to take it for repairs, leaving her without a functioning device.
These recurring incidents have fuelled accusations that M-KOPA deliberately cripples devices to pressure clients into taking on more debt, a tactic that has drawn widespread backlash from low-income earners who feel trapped by the company’s practices.
The company’s issues, unfortunately, do not end with its customers.
A fresh source has now brought to light the toxic environment fostered by M-KOPA’s outsourcing partners, further deepening the firm’s troubling legacy.
The former employee of iSON Xperiences, a company handling M-KOPA’s customer care operations, recently shared a detailed account of their experience.
The source, who joined iSON in late 2024 out of desperation for work, initially overlooked red flags about the company’s history of failing to pay agents their leave entitlements - a problem that was later resolved but should have served as a warning.
In an e-mail seen by nyakundireport.com , the insider described a gruelling work environment at iSON, where they handled customer chats under immense pressure.
Once on the job, the employees found themselves under relentless pressure while handling customer chats.
Meetings meant to provide updates turned into harsh sessions where team leaders scolded workers, leaving them demoralized before their shifts even began.
The work schedule is punishing. Six days a week with low pay. Draining employees both physically and mentally.
Team leaders, themselves strained by demands and inadequate compensation, often take out their frustrations on staff, admitting they saw little difference between their roles and those of regular agents.
Promised salary increases for agents never extend to team leaders, creating tension that trickles down to the rest of the team.
The insider also revealed that assurances of health insurance, given during orientation as a benefit after six months of service, turned out to be empty.
Veteran agents confirmed that no such coverage was ever provided, leaving employees stunned at the blatant deception by a company expected to uphold better standards.
The oppressive atmosphere is not confined to iSON alone.
M-KOPA’s outsourcing to CCI experiences a similar pattern of strain and mistreatment, with reports from workers there mirroring the experiences at iSON.
A particularly harsh policy enforced by M-KOPA demands that agents achieve a 94% score on performance audits and falling short by even a small margin, sometimes due to minor oversights like missing a punctuation mark in a customer chat, can lead to severe consequences.
M-KOPA pressures iSON and CCI to either terminate the agent’s contract or refuse to renew it upon expiry, leaving workers in constant fear of losing their jobs over trivial errors.
Unable to endure the relentless demands and toxic culture, our source told us that they eventually walked away from the role, urging others with similar experiences to come forward and share their stories about M-KOPA’s role in perpetuating such conditions through its outsourcing partnerships. "Good afternoon Nyakundi. You mentioned M-KOPA so let me tell you something about their partner companies. So M-KOPA has outsourced customer care work to a company called iSON Xperiences. I didn't know how toxic that company was until I worked there. So I was desperate for work nika apply job huko ison na nikapata. I did some research online nikaona the company had failed kulipa agents wao pesa za leave sometime back but after finding out walilipa later on, it didn't bother me, kumbe that was a red flag! I wish I knew! Fast forward to late 2024, we trained after getting the job halafu tukaanza kazi. Sisi we were chatting with customers and the toxic pressure yenye iko hapo is on another level. Pre shifts are supposed to be times zenye tunapewa product updates na what needs to be corrected. Lakini sasa tulikua tunapewa lecture kama watoto wadogo. Unasomewa na kupigiwa kelele kama a 10 year old. By the time you login your morale is down and you are thinking about how you will resign. And that is not all, you work 6 days a week, pressure ni crazy na mshahara kidogo ajabu. What I found interesting, hao team leaders walikua wanacomplain that they are pressured to deliver with shitty pay. There was a time when agents waliongezwa mshahara and they were ignored. You could see the disappointment on their face. Halafu wanakuja kutushoutia. NKT! They were openly saying hakuna tofauti ya agent na Team Leader. Come to think of it hawa watu hawapumziki, always moving up and down. They are overworked and underpayed. Something else, during orientation, tuliambiwa that we would qualify for health insurance cover after sometime, around 6 months. Kufika huko! 😂😂 The tenured agents confirmed to me that hiyo haiko. I was so shocked. I couldn't believe a modern company could lie to its employees. Unadanganywa upate kazi halafu unatisiwa kama mtoto mdogo. M-KOPA also outsources at CCI na my friends huko tell me M-KOPA's pressure and abuse is equally the same. I know kuna watu wamework huko na they have a similar experience with M-KOPA on your timeline and they can validate my words. The thing is, you are supposed to score a 94% in your audits and when you score a 90%, M-KOPA force iSON or CCI to fire you. They might terminate your contract or choose not to renew it when it expires. Na ujue hiyo difference ya 4% ni sababu hukuweka fullstop ukichat na customer. M-KOPA is enabling a toxic working environment through outsourcing. Mimi nilichoka, I just absconded. Waambie wakupee story. Wako hapa." This latest revelation adds another dimension to M-KOPA’s already tarnished reputation, showing how the company’s influence extends beyond its direct operations to create a ripple effect of mistreatment across its partner firms.
The strict performance demands imposed by M-KOPA not only place undue pressure on agents but also reveal a broader pattern of disregard for employee well-being, echoing the same lack of accountability seen in the company’s treatment of its warehouse workers and customers.
As these stories continue to surface, they paint a grim picture of a firm that prioritizes profit over fairness, leaving both its clients and workers to bear the brunt of its exploitative practices.
The growing number of voices speaking out against M-KOPA suggests that the company’s challenges are far from resolved, raising questions about whether meaningful change will ever come without stronger regulatory intervention.