FinDev Canada invested millions in a failing Kenyan cellphone company without due diligence, a fact revealed in a six-year-delayed internal memo.

FinDev, a 2017 Development Finance Institute with a $300 million budget, invested US$10 million in Nairobi-based M-Kopa Holdings Ltd., which sells cell phones and housewares door-to-door.

Since 2018, FinDev has invested $43.4 million in privately held M-Kopa shares, with the company reporting $138.6 million in total losses.

.@FinDev_Canada internal files disclose no "due diligence" before it sank millions in money-losing Kenya cellphone firm with zero parliamentary scrutiny, told staff to make it sound "convincing." 
Memo withheld from Blacklock’s for 6 years under #ATI #cdnfoi… pic.twitter.com/y8w7AO3T2N

— Blacklock's Reporter (@mindingottawa) August 13, 2025

A November 10, 2017 board meeting revealed the team's over-reliance on external due diligence and urged directors to prepare for scrutiny. It never turned a profit, leaving taxpayers responsible for losses, which it refused to disclose, citing restrictions. 

FinDev fast-tracked M-Kopa's approval from October 3, 2017, to board agreement on November 10, relying on existing due diligence. Interest was confirmed by December 8, and payment occurred on February 26, 2018.

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An internal email separately highlighted the need to clearly justify their role in the first transaction, anticipating significant scrutiny. FinDev refused to comment on the documents, according to recent Blacklock’s reporting.

“FinDev takes seriously its responsibility for transparency regarding its financing and investment activities,” the agency claimed in a statement.

Trudeau's $300 million FinDev Canada program gave nearly $13 million to a company in Nairobi which went on to lay off 150 employees two weeks later.https://t.co/T00mVYQGUR#cdnpoli

— Rebel News (@RebelNewsOnline) November 27, 2020

The Crown corporation has vigorously defended itself against accusations of misleading MPs, stating a "potential exit" in 2024, despite not making a profit. M-Kopa Holdings has consistently incurred financial losses, sustained by credit and private share sales.

Access To Information records earlier showed managers approved spending on the premise of "good quality jobs in East Africa," and a 50% female workforce.

Taxpayer investment recovery was unconfirmed, with the share purchase based on market development and financial returns. “The directors have made an assessment of the group’s ability to continue as a going concern,” management stated in a 2021 notice to shareholders. 

The Crown corporation acquired M-Kopa shares without consulting its chief investment officer or receiving cabinet approval. M-Kopa issued layoffs soon after announcing its FinDev partnership.