The Central Bank of Kenya and its Asset Recovery Agency (ARA) have intensified their clampdown on Nigerian FinTech Startups over allegations of card fraud and international money laundering.
In the more recent accusations, Flutterwave Payment Technology Limited, Boxtrip Travel and Tours Limited, Bagtrip Travel Limited, Elivalat Fintech Limited, Adguru Technology Limited, Hupesi Solutions, Cruz Ride Auto Limited, and one Simon Ngige were all accused of money laundering with a Kenyan court Kenyan High Court seizing Sh7 Billion ($59 million), from 56 accounts belonging to the FinTechs.
Others include Chipper, Korapay, and Kenyan-based Remix, all embroiled in fraud accusations by Kenyan authorities.
Kenya’s Asset Recovery Agency (ARA) filed 2 suits against the companies forcing the High Court to freeze their accounts on the suspicion that they brought over $50 million (KES6 billion) into Kenya as part of a money laundering scheme.
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A few months back, reports emerged in Kenyan media accusing Multigate, and Remix of being involved in a SH25.6 billion ($220.9 million) in wired transactions that took place between October and November 2020.
Meanwhile, Nigerian companies Multigate, Flutterwave, and Korapay have denied all accusations vehemently.
The East African country has a loose forex policy that allows for easy repatriation of forex out of the country.
Asides from regulatory delays, several sources within the Nigerian FinTech community have classified these accusations as slander, far from the truth, and politically motivated.
Rather they attribute the accusations to the hotly contested elections in Kenya between Raila Odinga, 77 years old, (who is supported by President Uhuru Kenyata), and the current Deputy President, 55-year-old William Ruto.
It was gathered that at the heart of the entire debacle circles around the son-in-law of the Deputy President, Ruto who has a close relationship with a Kenyan FinTech Startup as well as several Nigerian FinTechs.
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Sources suggest the hotly contested election is instigating a string of accusations and counter accusations against Ruto and his running mate with Nigerian businesses caught in crosshairs.
Just a few days ago, running mate to Ruto, Rigathi Gachagua lost Sh202 million to the State after a Kenyan High Court ruled that the money proceeds from corruption. The money was held in a Microfinance Bank.
A judge ruled that Gachagua admitted that he received the funds from government agencies without evidence that he supplied any services or goods to the government.
Gachagua on the other hand, claims the money “was money in a fixed revolving fund rotating between three accounts for seven years” and not proceeds of corruption