Kenyan High Court Approves Request To Drop Final Lawsuit Against Flutterwave
A Kenyan High Court has reportedly granted the Asset Recovery Agency’s (ARA) request to drop its final lawsuit against Flutterware, a Nigerian payment company.
A Re-Run Of Flutterwave To Date
Flutterwave was founded in 2016 and achieved unicorn status in 2021, leaving it valued at $3 billion by February 2022.
This made the company the most valuable African startup before facing several allegations and reports of the CEO Olugbenga Agboola bullying and harassing staff.
There were also allegations that Agboola illegally exploited assets, participated in financial impropriety, and operated without a license.
In July 2022, the Kenyan High Court officially granted the ARA permission to freeze over $50 million in 52 accounts belonging to the fintech giant following allegations of money laundering in Kenya.
Eight other Nigerian companies, including RemX Capital Ltd, Avalon Offshore Logistics Ltd, and Kandon Technologies, had their accounts frozen.
Flutterwave responded in an online statement, “Claims of financial improprieties involving the company in Keyna are entirely false, and we have the records to verify this.”
In September 2022, ARA froze another $3.3 million belonging to Flutterwave, and in February 2023, a Kenyan court ordered the release of the $52 million froze.
In July 2023, a Kenyan High Court denied ARA’s – an anti-money laundering agency – request to withdraw its second lawsuit against Flutterwave.
Withdrawal of the lawsuit
The ARA has withdrawn its case because research showed Flutterwave was not engaged in any illegal activity, including fraud and money laundering.
“After considering all the facts presented to this court, as well as my earlier ruling on the agency’s request for the withdrawal of this suit, the withdrawal is hereby allowed, and this suit is marked as withdrawn,” the judge said in his ruling.
The judge also stated that the withdrawal was contingent upon the director of the agency and the investigator bearing “solely and personally” all future civil liabilities.
Kenya now intends to release the $3 million that Flutterwave couldn’t have access to.
In a statement, Flutterwave states it welcomes the recent court ruling that vindicates their company from wrongdoing.
“The court’s decision affirms our steadfast commitment to ethical business practices and upholding the highest standards of integrity,” they wrote.