Kenyan Court Clears Flutterwave of Money Laundering and Fraud Allegations

African fintech firm Flutterwave can breathe a sigh of relief as the high court in Kenya has granted the country’s Asset Recovery Agency (ARA) permission to withdraw its second and only remaining case against the payments company.

The withdrawal of the case by the ARA follows further investigations, which established that Flutterwave was not involved in criminal activities, including money laundering and fraud.

The latest development concludes a legal saga that began when the ARA initially froze $52.5 million in Flutterwave’s accounts and sought to establish that these funds were proceeds of crime. The case was closed in March, with the release of the $52.5 million, after the ARA withdrew its initial case.

This legal victory is significant for Flutterwave, which has been in the process of acquiring a payments service provider and remittances license from the Central Bank of Kenya. Last year, the Central Bank of Kenya had flagged Flutterwave for operating without the required license.

The judge’s ruling also highlighted the negligence and recklessness of the ARA in commencing legal proceedings without completing its investigations, leading to potential civil or tortious liabilities falling solely on the agency’s director and the investigator rather than being imposed on the Kenyan government or public funds.

This development comes as Flutterwave intensifies its efforts to expand its fintech services in Kenya and other markets, offering payment solutions for businesses and individuals across Africa.