Kora, Kandon Cleared Of Money Laundering Allegations In Kenya

The money laundering allegations raised against Korapay and Kandon Technologies Limited the Nigerian payment company by the Asset Recovery Agency (ARA) of Kenya in July 2022 have been dropped, according to a report by TechCabal.

The court froze $249,990 (Sh29.5 million) belonging to Kora’s account with Equity Bank, while Kandon Technologies Ltd had its $126,841 (Sh15 million) in two accounts at UBA bank frozen.

According to the ruling, both companies were barred from withdrawing or transferring money in the stated accounts for six months so that ARA can complete investigations into the allegations.

However, within four months, ARA filed a notice at the High Court of Kenya at Nairobi Anti-Corruption and Economic Crimes Division, withdrawing the charges against both Techstars-backed companies.

“Please note that investigations are now finalized. I would like to confirm that allegations of money laundering and card fraud against [Kora] were not established. Please treat this communication as final,” according to a document from the Kenyan Directorate of Criminal Investigation (DCI), shared with Kora earlier this week.

Kora said the frozen funds were part of the capital requirements from the Central Bank of Kenya (CBK) for obtaining a payment service provider and remittance operator license (PDF Pg. 720). “Kora deposited the sum of $250,000 in its freshly opened bank account. In line with CBK requirements, this amount was left untouched pending the granting of our license,” the company said in July 2022.

Gideon Orovwiroro, Kora’s Chief Operations Officer, stated: “Kora has always maintained its innocence in this matter and we are glad that finally the ARA and the DCI have dropped all charges and ratified Kora. We’d also like to commend both agencies for their professionalism and thoroughness in seeing this investigation to the conclusive end.”