Flutterwave is navigating legal challenges on its path to obtaining a payments license in Kenya, as it forges ahead with strategic developments to expand its international partnerships and market reach.
The company is focused on strengthening its operations as part of its plans to onboard more global partners and broaden its market presence. An integral part of these efforts involves securing a payment license in Kenya, a critical market within Africa.
Although certain legal obstacles have impacted the licensing timeline, there are positive indications that Flutterwave, the most valuable fintech entity on the continent, will eventually receive regulatory approval in Kenya.
Read Also: Flutterwave Accounts Frozen in Kenya over Fraud Claims
Anticipation for Flutterwave Payments License
Flutterwave has received the green light for its remittance business name, marking a significant step forward in its pursuit of a money remittance license granted by the Central Bank of Kenya (CBK). While the specific timing of the license acquisition remains undisclosed, the decision lies within the purview of the CBK.
An email statement from Flutterwave to Techcabal noted,
“We obtained name approval from CBK for our remittance business, which signifies a promising start and reflects our commitment to acquiring a money remittance license from the Central Bank of Kenya (CBK). As for the timeline, that rests solely with CBK. We are, however, in active communication with CBK and are optimistic about the progress.”
Optimism Amid Legal Proceedings
In 2022, Flutterwave, along with other entities like Hupesi Solutions and Adguru Technology Limited, faced legal action by the Asset Recovery Agency (ARA) due to money laundering and fraud suspicions. A sum of $3 million linked to Flutterwave was frozen, alongside additional funds from multiple companies, amounting to $52.5 million.
While the first case was withdrawn earlier this year, the ARA’s attempt to withdraw the second case was declined by the court, citing insufficient reasons and the imperative of transparency.
High Court Judge Nixon Sifuna emphasized the ARA’s responsibility to act in the public interest, considering its role in combating corruption, economic crime, and money laundering. Despite this legal backdrop, Flutterwave remains committed to its efforts in Kenya, facilitated by the approval of its remittance business name.
Flutterwave conveyed,
“Presently, the court has instructed the ARA to fulfill certain steps to conclude the withdrawal of the case against us. We maintain optimism regarding the ARA’s compliance with the court’s directives to resolve the matter. Regardless, we will actively cooperate with both the court and the ARA to bring this matter to a resolution,” according to statements shared with TechCabal.
