July 30, (THEWILL) – The Central Bank of Kenya has issued a notice, instructing all commercial banks in the country from operating with Nigeria fintech, Flutterwave Payment Technology.
Another Nigerian fintech affected by this directive is Chipper Technologies.
Matu Mugo, the deputy director, bank supervision, accused the fintech of operating in the country illegally.
This comes amid disputes about the use of Flutterwave in the East African country.
Last month, Kenya’s central bank froze the accounts of Futterwave over alleged money laundering, which the firm denied.
The central bank accused it of engaging in Money Remittance and Payment Services without licencing and authorisation.
In a circular sent to all the banks in Kenya, it said it has ordered them to immediately cease and desist from dealing with Flutterwave and Chipper.
“You are, thereafter, required within seven (7) days of the date of the letter to confirm to CBK your compliance with the directive,” the circular read.
Meanwhile, Flutterwave says it has done no wrong.
In a press statement, it said they legally got an operating licence in Kenya.
“Like many other financial technology service providers in Kenya, our entry into the market was through partnerships with banks and mobile network operators, licenced by the Central Bank of Kenya.
“In 2019, as our operations grew, Flutterwave submitted its application for a Payment Service Provider licence. 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 licence.
“We are committed to operating within the stipulated laws, regulations and industry standards in Kenya.
“We are understanding and respectful of the Central Bank of Kenya’s responsibility to protect the payments ecosystem and we support the ongoing collaboration between regulators and fintechs to create an atmosphere that fosters innovation in the financial services industry”, its statement read.
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