in ,

Flutterwave Successfully Recovers $3 Million in Kenya


The Kenyan high court has recently released $3 million that belonged to fintech leader Flutterwave and two of its partners, thereby concluding a legal dispute that was initiated in 2022. TechCabal has verified this development. Despite a court directive issued in November 2023 to release the funds, they had remained frozen until now.

In July 2023, the Assets Recovery Agency of Kenya requested court permission to dismiss money laundering accusations against the fintech startup. However, the judge rejected the plea, noting the failure of the ARA to present evidence justifying the termination of the case.

In November 2023, the charge was eventually withdrawn, allowing Flutterwave to regain access to the remaining $3 million of its funds.

Flutterwave stated in a November 2023 announcement, ‘The ARA has officially withdrawn its suit against us, marking an end to the scrutiny of Flutterwave Payments Technology Limited Kenya’s bank accounts.

In 2022, the Asset Recovery Agency (ARA) initially froze more than $55 million of Flutterwave’s funds over allegations of fraud and money laundering. The first case was withdrawn in March 2023, leading to Flutterwave reclaiming the majority of the funds, which amounted to $52.5 million.

After the initial case’s resolution in March 2023, the remaining funds held by the Asset Recovery Agency (ARA) were not immediately released due to the ARA’s opposition to unfreezing them. In January 2024, High Court Judge Nixon Sifuna, presiding over the matter, expressed disapproval towards the ARA’s request to withdraw a second case.

Per the ARA’s statement, Flutterwave was deemed innocent of fraud in the case, yet the ARA withdrew the charge and sought to retain the funds. Judge Sifuna criticized this action, describing it as a “litigation facade or decoy,” deeming it inappropriate, an abuse of the court process, and an attempt to waste valuable judicial time.

Now that the company has regained access to the funds, Flutterwave’s next strategic move is aimed at acquiring a payments and remittance license in Kenya. Unlike other licensed payment firms, Flutterwave is currently unable to conduct payment collection or settlement operations within the country. Presently, it operates via partnerships with both local and international entities active in the Kenyan market, a list that includes Uber.

Kenya stands as one of Flutterwave’s key markets, in addition to Nigeria, South Africa, and Egypt. The company has strategically established offices in Rwanda, Ghana, Cameroon, Cote d’Ivoire, and Senegal, further expanding its presence across different African regions.




What do you think?

0 points
Upvote Downvote

Total votes: 0

Upvotes: 0

Upvotes percentage: 0.000000%

Downvotes: 0

Downvotes percentage: 0.000000%

Leave a Reply

Your email address will not be published. Required fields are marked *

South Africa Embarks on Innovative Journey to Unlock Potential of Open Banking

Q-KON and Intelsat Broadband Sevices

Starlink Activities Deemed Illegal by Botswana Regulator