Flutterwave has reportedly made significant progress towards securing a payments license in Kenya, in spite of a few legal hurdles it has to cross in that country.
Flutterwave is currently making key developments to its operations driven by its plans to onboard more international partners via an IPO and widen its market base.
The company has therefore made progress toward securing a payment license in Kenya, a key African market. A hunger of legal issues may have delayed the licensing process, but there are positive signs that the continent’s most valuable fintech company will get the regulatory nod in Kenya.
Progress
For one, Flutterwave has received name approval for its remittance business and is a few steps closer to acquiring a money remittance license from the Central Bank of Kenya (CBK). Specific details about when this will happen remain undisclosed, as it is within CBK’s jurisdiction to make this decision.
“We got the name approval from CBK for our remittance business; it is a great start and a show of good faith towards getting a money remittance license from the Central Bank of Kenya (CBK). On the timelines, we cannot speak to that as it is solely at the discretion of CBK. We are, however, in active communication with CBK and are optimistic about the process,” Flutterwave said in an email to TechCabal.
Optimism
In 2022, ARA froze $3 million linked to Flutterwave, Hupesi Solutions, and Adguru Technology Limited over money laundering and fraud suspicions and another $52.5 million from Flutterwave and six other companies. While the first suit was formally withdrawn in March this year, the court rejected the ARA’s withdrawal request for the second case due to insufficient reasons provided by the agency and the importance of transparency. High Court Judge Nixon Sifuna’s ruling highlighted the need for ARA’s decisions to be guided by public interest. He emphasised the agency’s role in combating corruption, economic crime, and money laundering and declined the withdrawal attempt due to the lack of explanations for its decision.
However, this ruling seems unlikely to delay Flutterwave’s efforts to secure a license for operating in Kenya after receiving name approval from the CBK. “As it currently stands, the court has directed the ARA to take some steps to complete the ARA’s withdrawal of the matter against us. We are optimistic about the ARA obeying the Court’s directions and closing out the matter. Regardless, we will continue to actively cooperate with the Court and the ARA, where necessary, to bring the matter to a conclusion,” Flutterwave said.
