Kenya’s high court has released $3 million belonging to fintech giant Flutterwave and two associates, concluding a legal dispute that started in 2022.
Despite a court order to release the funds in November 2023, they were held back until now.
Back in July 2023, Kenya’s Assets Recovery Agency attempted to drop money laundering charges against Flutterwave, but the judge rejected the request due to a lack of evidence.
The charges were eventually withdrawn in November 2023, allowing Flutterwave to regain access to the remaining $3 million.
Flutterwave stated in November 2023, “The ARA has officially withdrawn its suit against us, marking an end to the scrutiny of Flutterwave Payments Technology Limited Kenya’s bank accounts.”
Initially, the Asset Recovery Agency froze over $55 million in 2022, alleging it was proceeds of fraud and money laundering. The first case was dropped in March 2023, and Flutterwave recovered $52.5 million.
The remaining funds were held back by the ARA, leading to criticism from High Court Judge Nixon Sifuna in January 2024 for their attempt to withdraw a second case.
Despite the ARA finding Flutterwave innocent, they requested to continue holding the funds, described by Judge Sifuna as “inappropriate” and an “abuse of the court process.”
With the funds released, Flutterwave’s next move is to seek a payments and remittance licence in Kenya, where it currently operates through partnerships, including with Uber.
Kenya is a significant market for Flutterwave, alongside Nigeria, South Africa, and Egypt. The company has also established offices in Rwanda, Ghana, Cameroon, Cote d’Ivoire, and Senegal.
Related Posts
Educatly plans MENA expansion after banking seed funding
Rubyx secures $440k loan from Proparco
