Kenyan Central Bank Blocks FinTechs Flutterwave, Chipper
The Central Bank of Kenya issued a letter on Friday (July 29) directing banking and mortgage CEOs to cease transactions with Kenyan FinTechs Flutterwave Payments and Chipper Technologies.
“It has come to the attention of the Central Bank of Kenya (CBK) that Flutterwave Payments Technology Limited (Flutterwave) and Chipper Technologies Kenya Limited (Chipper) have been engaging in Money Remittance and Payment Services without licensing and authorisation by CBK,” the bank wrote.
The letter follows comments made during a Wednesday (July 27) Monetary Policy Committee meeting by CBK Governor Patrick Njoroge, who said that Flutterwave and Chipper were “not licensed to operate, and therefore they shouldn’t be operating.”
Chipper and Flutterwave both provide digital payment and mobile money solutions for African businesses and consumers. In recent years, the two platforms have risen to prominence, thanks to large investment rounds that have placed them among the continent’s most valuable FinTechs.
Although they both have considerable user bases in other countries, Kenya is an important market for the two companies.
As Bloomberg reported on Friday, Flutterwave said: “We have been in constant engagement with the Central Bank of Kenya to ensure that we provide all the requirements, and we look forward to receiving our license.” Bloomberg noted that Chipper did not respond to a request for comment.
The latest developments follow a Kenyan court order this month that froze multi-currency bank accounts for 90 days that were linked to transactions by Flutterwave on suspicion of money laundering.
Read on: Flutterwave Denies Kenyan Regulator’s AML Claims
Flutterwave has denied the allegations. On the company’s website, Flutterwave stated that “claims of financial improprieties involving the company in Kenya are entirely false, and we have the records to verify this.”
“Through our financial institution partners, we collect and pay on behalf of merchants and corporate entities,” the company wrote. “In the process, we earn our fees through a transaction charge, records of which are available and can be verified. As a business, we hold corporate funds to support our operations and provide services to all our customers.”