Kenyan court freezes accounts of Korapay and Kandon Technologies over money laundering charges

Two Nigerian firms, Korapay and Kandon Technologies, have had their accounts frozen over claims that they are being used by fraudsters as conduits of international money laundering.

This is coming just days after eight bank accounts including that of Flutterwave were also frozen over money laundering too. However Flutterwave has denied the charges, saying that the claims of financial improprieties in Kenya were entirely false .

A Kenyan High count issued the orders in two separate suits filed by the Asset Recovery Agency against the Nigerian firms. According to a Standard Media report, In the first case against Korapay Technologies Ltd, Justice Maina froze $249,990 (Sh29.5 million) in their account at Equity Bank, while Kandon Technologies Ltd had its Sh15 million in two accounts at UBA bank frozen.

The Asset Recovery Agency (ARA), in its suit against the two companies, argued that they are part of an international ring of fraudsters who have been using Kenyan banks as conduits of illicit money whose source cannot be established.

ARA claims that Korapay Technologies Ltd, owned by Gideon Oghenetega Orowiroro and Dickson Chukwuma Nsofor had been receiving millions of shillings in their accounts before the money was transferred to other individuals while Kandon Technologies Ltd siphoned Sh5.5 billion which was transacted through its bank account at UBA in a period of seven months between October 2021 and April this year.

According to ARA, “Our investigations revealed that Kandon’s account, owned by Nigerian nationals Uzoamaka Pauline Okoro and Ayowole Oluwasen Ayodele, had transacted Sh5.5 billion in seven months and by the time we got intelligence information that they were engaged in money laundering, they had transferred the funds to other jurisdictions with only Sh15 million remaining.”

ARA maintained the two companies are linked to the other entities whose bank accounts were frozen last week over allegations that they are engaged in card fraud and international money laundering.

ARA claims that they established that the Nigerian firms are shell companies incorporated in Kenya for purposes of taking advantage of the liberal financial system to launder funds whose sources are not legitimate.

The court ruled that no withdrawals or transfers should be made from the accounts for six months to allow Asset Recovery Agency complete investigations in the allegations of money laundering.

No official statements have been made by the two Nigerian firms as at the time of this report.