Kenya recently dropped all charges of financial impropriety it has against Flutterwave. Last year, in July 2022, Flutterwave was in a battle with the Kenyan government on charges of suspicions of card fraud and money laundering. It has resulted in the Kenyan court freezing some of the Fintech company accounts.
The Kenyan court went ahead to grant Kenyan anti-money laundering agency, Asset Recovery Agency’s (ARA) application on August 25 to prevent Flutterwave from transferring or withdrawing the funds in three bank accounts, including two in UBA and one in Access Bank, and 19 Safaricom M-Pesa pay bill numbers.
Also, in July, Kenya’s Asset Recovery Agency got a court order to freeze 56 bank accounts of which 52 of the bank account holding KES (Kenyan Shillings) of 7 billion belonged to Flutterwave.
Read Also: Nigerians Vs Kenya Over Flutterwave Frozen Funds
Kenya’s Allegations Against Flutterwave.
Some of the allegations laid against Flutterwave by the Kenya government are as follows;
- At the time, the ARA alleged that Flutterwave had no records of providing merchants services in Kenya.
- It also claimed that the fintech was operating a payment service platform without authorisation from the Central Bank Of Kenya (CBK), a claim which was confirmed by the CBK itself. As a result, the CBK orders Kenyan Commercial bank, microfinance banks, and mortgage finance companies to immediately end their partnership with the fintech unicorn, Flutterwave.
Meanwhile, the fintech company denied all the allegations saying that all its transactions were legal and it had all the necessary records to prove its innocence.
“Claims of financial improprieties involving the company in Kenya are entirely false, and we have the records to verify this. We are a financial technology company that maintains the highest regulatory standards in our operations.” the company had said.
Kenya Dropped All Charges Against Flutterwave
Bloomberg reported on February 3 that a Kenyan court has now dropped all charges against Flutterwave. The withdrawal of the charges was contained in a Kenyan high court document and verified by Robert Gitau, a lawyer representing Flutterwave.
Impact on Flutterwave
The end of this lengthy and complicated dispute is favorable to Flutterwave after its image has been in a lot of setbacks in 2022 due to its involvement in legal wrangles. Though the company refuted most of all the allegations, the bombardment of the bad press took some shine off a much-loved startup. But there’s no doubt that it needs some good news as it moves forward.
Flutterwave Sponsors Bigbrother Titans 2023.
Talking about good news, Flutterwave took a positive turn this year as the company is the sponsor of the current Bigbrother reality show ‘’Bigbrother Titans’’ in partnership with a newly introduced Fintech company, Bamboo.
This is a big investment as it will help the company restore its image and also be marketed to lots of viewers to sponsor the show, especially for this season that has a combination of both Nigerians and South Africans.
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