A Kenyan high court has unfrozen $3 million belonging to fintech giant Flutterwave and two of its associates, concluding a legal battle that began in 2022. This development comes after the funds remained withheld despite a court order in November 2023 to release them.
The dispute originated in 2022 when Kenya’s Assets Recovery Agency (ARA) froze over $55 million of Flutterwave’s funds, alleging they were linked to fraud and money laundering. In March 2023, the ARA withdrew the first case, allowing Flutterwave to recover $52.5 million. However, the remaining $3 million was retained due to ongoing litigation.
The ARA sought to withdraw the second case in July 2023 but failed to convince the court. A ruling in November 2023 ultimately dismissed the charges and ordered the release of the remaining funds, officially clearing Flutterwave of allegations. Despite this, the funds remained frozen until a recent ruling by High Court Judge Nixon Sifuna, who criticized the ARA for prolonging the matter unnecessarily. Judge Sifuna described the ARA’s actions as an “abuse of the court process.”
With the legal hurdle cleared, Flutterwave plans to focus on securing a payments and remittance license in Kenya, a critical market for the fintech company. Currently, Flutterwave operates in Kenya through partnerships with local and international companies like Uber but lacks direct authorization to collect or settle payments in the country.
Kenya remains a key part of Flutterwave’s operations, alongside other markets like Nigeria, South Africa, and Egypt. The company has expanded its footprint across Africa with strategic offices in Rwanda, Ghana, Cameroon, Cote d’Ivoire, and Senegal, reflecting its ambition to dominate the continent’s fintech landscape.
