Kenyan Court Clears Flutterwave of Alleged Financial Misconduct

Published 5 months ago

In a recent development, Kenya’s High Court has permitted the country’s Asset Recovery Agency (ARA) to withdraw the remaining case against African fintech company, Flutterwave. This decision brings a sigh of relief for the payments company, which is actively seeking to expand its services in the country.

Flutterwave Can Now Pursue Licensing

This court decision paves the way for Flutterwave to acquire a payments service provider and remittances license from the Central Bank of Kenya. The Central Bank had previously flagged Flutterwave for operating without the necessary license.

Case Withdrawn Due to Lack of Evidence

The ARA withdrew the case it had filed against Flutterwave last year after further investigations revealed the fintech company was not involved in any criminal activities, including money laundering and fraud. The judge, in his ruling, stated, “After considering all the facts presented to this court, the withdrawal is hereby allowed, and this suit is marked as withdrawn.”

Court Criticizes ARA’s Investigative Approach

The court’s ruling also criticized the ARA for filing the case before completing its investigations. The judge described the ARA’s actions as “inappropriate, negligent, reckless and absurd.” Furthermore, the court stipulated that any potential liabilities arising from the case will not fall on the Kenyan government but will be borne “solely and personally” by the ARA’s director and the investigator.

Frozen Funds to be Released

Following the court’s decision, Kenya is set to release $3 million in frozen funds back to Flutterwave and its co-accused, Adguru and Hupesi solutions. This follows a previous case withdrawal in March when $52.5 million was released after the ARA formally withdrew its case.