In a significant turn of events for the African fintech sector, Flutterwave has been cleared of legal hurdles in Kenya. The High Court granted permission for the country’s Asset Recovery Agency (ARA) to withdraw its remaining case against the prominent payments company. This withdrawal marks a substantial victory for Flutterwave, which is currently seeking to solidify its presence in Kenya through the acquisition of a payments service provider and remittances license from the Central Bank of Kenya—a process that was hampered last year when the company was flagged for operating without a license.
In September, Flutterwave unveiled an ambitious plans to invest $50 million in Kenya, signaling its strong optimism regarding the issuance of its operating license in the country.
The ARA filed the case last year, alleging that Flutterwave was involved in money laundering and fraudulent activities. However, further investigations led to a new understanding that the fintech company was not engaged in any criminal activities. The judge, acknowledging the updated findings and the previous request for case withdrawal, officially dismissed the lawsuit.
This resolution follows an earlier incident in July where the same judge had denied the ARA’s initial request to withdraw the case, instructing the agency’s director and the investigating officer to provide detailed justifications for their decision. The judge had expressed the need for clarity given the ARA’s prior submission of extensive documentation, including bank statements, purportedly showing illegal transactions.
In delivering the final ruling, the judge criticized the ARA for initiating legal proceedings without conclusive investigations, describing the actions as “inappropriate, negligent, reckless, and absurd.” He further stated that any subsequent civil liabilities resulting from this case would not fall on the Kenyan government or public funds, but would be the responsibility of the ARA’s director and the investigator, citing their mishandling of the case.
As a result of the court’s decision, Kenya is now poised to unfreeze $3 million previously inaccessible to Flutterwave and its co-accused, Adguru and Hupesi Solutions. This follows the closure of the initial case in March, which also led to the release of $52.5 million after the ARA’s formal retraction.
Flutterwave’s exoneration is not only a personal company triumph but also a positive signal to the fintech industry in Africa. It underscores the importance of due process and diligent investigation in legal proceedings, especially in the dynamic and rapidly growing digital finance space. With the legal obstacles now cleared, Flutterwave is set to continue its expansion efforts in the Kenyan market, further cementing its status as a leading player in Africa’s fintech ecosystem.