The Kenyan High Court has
finally unfrozen $3 million belonging to Flutterwave, ending a legal dispute
that began in 2022. Despite a court order issued in November 2023 to release
the funds, they remained withheld until recently, leaving Flutterwave and its
associates in limbo.
Flutterwave had been
entangled in legal proceedings initiated by Kenya's Assets Recovery Agency
(ARA), which initially froze over $55 million, alleging that the funds were
linked to fraud and money laundering. The first case was withdrawn in March
2023, allowing Flutterwave to recover the majority of the frozen funds,
totalling $52.5 million.
However, the remaining $3
million faced prolonged opposition from the ARA, even after the withdrawal of
charges against Flutterwave in November 2023. The ARA's decision to withdraw
the case but still withhold the funds drew criticism from High Court Judge
Nixon Sifuna in January 2024. Judge Sifuna condemned the move as an
"inappropriate" use of the legal process and accused the ARA of
attempting to waste judicial time.
Flutterwave expressed
relief as its accounts were finally unfrozen, confirming the development
through a spokesperson. The company had faced accusations of money laundering,
but the ARA eventually withdrew its suit against Flutterwave in November 2023,
effectively clearing the fintech startup of any wrongdoing.
With the funds now
accessible, Flutterwave plans to apply for a payments and remittance license in
Kenya, a crucial step that would allow it to legally collect and settle
payments within the country. Currently, Flutterwave operates in Kenya through
partnerships with local and international companies, including Uber.
Kenya holds strategic
importance for Flutterwave, being one of its primary markets alongside Nigeria,
South Africa, and Egypt. The fintech giant has expanded its presence across the
African continent, establishing offices in Rwanda, Ghana, Cameroon, Cote
d’Ivoire, and Senegal.
By: Nana Appiah Acquaye
