Fintech behemoth Flutterwave successfully regains access to $3 million in Kenya

In July 2023, the Assets Recovery Agency (ARA) of Kenya tried to get court permission to drop money laundering charges against the fintech startup. However, the judge refused to allow this, citing the ARA’s inability to present supporting evidence to justify proceeding with the case against Flutterwave.

Nevertheless, by November 2023, the charges were eventually dropped, which permitted Flutterwave to restore their access to the remaining $3 million of their capital.

“The ARA has officially withdrawn its suit against us, marking an end to the scrutiny of Flutterwave Payments Technology Limited Kenya’s bank accounts,” Flutterwave expressed in a statement made in November 2023.

The Asset Recovery Agency (ARA) froze more than $55 million of Flutterwave’s funds in 2022 in response to accusations that the fintech startup was involved in fraud and money laundering. In March 2023, the ARA withdraw its first case, which allowed Flutterwave to recover most of its money totaling $52.5 million.

However, the remaining money was still held up since the ARA originally objected to releasing the funds. A High Court Judge, Nixon Sifuna, who managed the case, criticized the ARA for wishing to withdraw a subsequent case in January 2024.

Even though the ARA admitted there was no evidence of fraud on Flutterwave’s part, it still wanted to keep hold of the money. “Such a litigation gimmick is inappropriate, an abuse of the court procedure, and a unjustified consumption of limited judicial time,” commented Judge Sifuna.

Now that its funds have been returned, the next step for Flutterwave is to apply for a payments and remittance license in Kenya. Currently, unlike other licensed payment service providers, Flutterwave is not authorized to handle or settle payments in Kenya and only maintains local and international business partnerships, including one with Uber.

Kenya, alongside Nigeria, South Africa, and Egypt, is one of the primary markets for Flutterwave. Plus, the company strategically positions itself with offices in countries such as Rwanda, Ghana, Cameroon, Cote d’Ivoire, and Senegal.