Flutterwave Chief in Kenya with PR Guru to Repair Reputation

Flutterwave CEO, Agboola Olubenga, has arrived in Kenya to spearhead efforts to free up his company’s frozen funds and have the embargo on his company lifted.

According to local Kenyan newspaper, Olubenga was accompanied by Riva Levison, a top US lobbyist, political strategist, and PR guru who’s work includes solving challenges for clients across governments in Africa – from political risk to election strategy, handling briefs for former presidents like Ellen Johnson Sirleaf (Liberia) and Joyce Banda (Malawi).

In July 2022, Central Bank of Kenya (CBK) wrote to banks and other regulated financial institutions to stop dealing with FlutterWave, saying it was not licensed to operate in Kenya.

CBK’s move came after The High Court of Kenya froze $40 million in Flutterwave’s accounts in July 2022. According to reports, Kenya’s Assets Recovery Agency (ARA) sought and was granted the order to freeze several accounts with three banks belonging to Kenyan-registered Flutterwave Payment Technology Ltd.

It was also reported that the firm had transferred Sh184.9 billion ($1.45 billion) in 62 bank accounts spread across five banks in four years without the knowledge and licence from the CBK, and was one of three Nigerian fintechs suspected to be engaging in money laundering.

However in December 2022, the Asset Recovery Agency (ARA) is said to have changed tune on Flutterwave, indicating that investigations revealed that the money was not linked to money laundering – the reason for CBK’s blockade of the licence.

Despite this, several applications remained in the court by various people and parties who wanted the cash to remain frozen, or claimed a share of it. One such application by a Mr Morris Ebitimi Joseph, on behalf of 2,468 Nigerian investors, was rejected by the High Court.

“I have carefully considered the application and my finding is that it has no merit. The ARA has intimated its intention to withdraw the petition,” the judge said.

Flutterwave’s CEO hopes to re-apply for operating licenses in Kenya, which is said to have been his company’s second largest market after Nigeria.

“CBK invited us in December 2022 to re-apply for a money remittance and payments service provider licenses,” Mr Agboola said in an interview with the Business Daily in Nairobi.

Flutterwave is the biggest payments startup on the continent. It has processed over 400 million transactions worth more than $25 billion in 35 African countries so far.