Flutterwave's troubles in Kenya yet to end as second case proceeds

Africa’s most valuable unicorn Flutterwave is still not off the hook in Kenya. About $3 million of its money that was confiscated in the second government seizure over money laundering and fraud claims remains frozen, in two banks, and 19 mobile money accounts (M-pesa paybill numbers), as the matter is before Kenya's high court.

The $3 million funds seizure happened late August last year, less than two months after Kenyan court froze $52.5 million from Flutterwave and other entities including Elivalat Fintech, Boxtrip travel and tours, Bagtrip travels, Hupesi Solutions, Cruz Ride Auto Ltd, and Adguru.

With each seizure, the country’s Assets Recovery Agency (ARA), a state agency tasked with tracing proceeds of crime, filed a suit.

The initial case was closed last week and $52.5 million released, after the ARA formally withdrew the case. The second case, where Flutterwave, Adguru and Hupesi solutions are the respondents, however, continues. High court judge Esther Maina yesterday set the next mention for March 23.

While some parties predict that the case is unlikely to proceed to full hearing, Flutterwave remains uncleared by the court, delaying its prospects of getting a license to operate in Kenya.

Responding to TechCrunch queries regarding its current suit, Flutterwave said: "...we’re confident the outstanding suit is simply open due to usual court processes and will also go the way of the previous one as we’ve been cleared of all wrongdoing."

"We're happy to put this behind us and work to simplify payments for endless possibilities in one of Africa's most dynamic markets," the fintech said.

What has happened so far

Funds released after first case closes but Flutterwave's still frozen

The court released the funds belonging to Flutterwave and its co-accused after the ARA formally withdrew a forfeiture application against all of them on February 27 this year, bringing the first case to an end.