MLS Football Jersey
×

Fintech giant Flutterwave overcomes legal hurdles in Kenya

Fintech giant Flutterwave overcomes legal hurdles in Kenya

Fintech giant Flutterwave has overcome legal challenges that could have derailed its ambitious growth strategy to become an international venture capitalist favorite.

In a ruling handed down in Nairobi, High Court Judge Nixon Sifuna allowed the Asset Recovery Authority of Kenya (ARA) to withdraw its motion to dismiss proceedings against Flutterwave, effectively clearing the company’s reputation and paving the way for it to continue operating in Kenya.

Judge Severna criticized ARA for filing the lawsuit without completing its investigation, calling the move “improper, negligent, reckless and absurd.”

Fintech giant Flutterwave overcomes legal hurdles in Kenya

ARA accused Flutterwave of money laundering in 2020 and froze its accounts, putting the company’s operations in Kenya in jeopardy.Flutterwave has consistently denied the allegations and has challenged the court order, arguing that it complied with all regulatory requirements and was licensed by the Central Bank of Kenya in 2019.

M-Pesa, which is part of Safaricom, Kenya’s largest mobile network operator, has more than 55 million subscribers and handles more than 80 percent of Kenya’s digital payments. It has expanded its services to other countries in the region.

Kenya’s digital payments industry is often criticized for complacency due to the lack of a strong challenge to M-Pesa’s dominance.

Flutterwave operates in more than 30 African countries and supports more than 30 currencies, making cross-border transactions and money transfers simple. The service works with global payment platforms such as PayPal, Stripe and Visa to offer customers a wider range of payment options and markets.

The fintech startup also offers online checkout, e-commerce, invoicing, payment links and virtual card services.

According to a World Bank report, Kenya has one of the highest mobile payment transaction fees in Africa, averaging 11% of transaction value.

The addition of Flutterwave could significantly reduce these fees as it strives to become the leading payment platform in Africa and beyond.

Post Comment

MLS Football Jersey