Flutterwave Secures Release of $3 Million in Kenya, AfterHigh Court Unfroze Funds

In a resolution to a legal dispute that commenced in 2022, a Kenyan high court has unfrozen $3 million belonging to fintech giant Flutterwave and two associates, confirming the conclusion of the prolonged legal battle. Despite a court order issued in November 2023 to release the funds, they had remained withheld.

In July 2023, Kenya’s Assets Recovery Agency (ARA) sought court approval to drop money laundering charges against the fintech startup. However, the judge rejected the request, citing the ARA’s failure to provide evidence justifying the discontinuation of the proceedings.

Ultimately, in November 2023, the charges were withdrawn, allowing Flutterwave to regain access to the remaining $3 million of its funds. The legal entanglement began when the ARA initially froze over $55 million of Flutterwave’s funds in 2022, alleging that the funds were linked to fraud and money laundering. The first case was withdrawn in March 2023, enabling Flutterwave to recover the majority of the funds, totaling $52.5 million.

“The ARA has officially withdrawn its suit against us, marking an end to the scrutiny of Flutterwave Payments Technology Limited Kenya’s bank accounts,” Flutterwave said in a statement in November 2023. However, the remaining funds faced continued withholding as the ARA opposed their release. In January 2024, High Court Judge Nixon Sifuna, overseeing the case, criticized the ARA for seeking to withdraw a second case.

In 2022, the Asset Recovery Agency (ARA) froze over $55 million of Flutterwave’s funds, alleging them to be proceeds of fraud and money laundering. The initial case was withdrawn in March 2023, resulting in Flutterwave reclaiming the majority of the funds, totaling $52.5 million. However, the remaining funds were not promptly released, encountering opposition from the Asset Recovery Agency (ARA) at the time. In January 2024, High Court Judge Nixon Sifuna, overseeing the case, rebuked the ARA for attempting to withdraw a second case.

According to the ARA, it found Flutterwave innocent of any fraud in this case, yet it withdrew it and requested that it continue to hold the funds. “Such a litigation facade or decoy is inappropriate, an abuse of the court process, and an attempt at squandering the scarce judicial time,” Judge Sifuna said.

With the funds in the company’s hands, Flutterwave’s next business move will be seeking a payments and remittance license in Kenya. Unlike other licensed payment companies, Flutterwave is not legally allowed to collect or settle payments in Kenya. It only has partnerships with local and international companies operating in Kenya, including Uber.