The legal battle between Nigerian fintech startup Flutterwave and the Kenyan anti-graft agency, Assets Recovery Agency (ARA), has concluded with a recent ruling by the Kenyan High Court. The court has ordered the unfreezing of $3 million belonging to Flutterwave and two associated companies, marking the end of a protracted dispute over the seized funds.
The conflict began in July 2022 when more than 50 bank accounts linked to Flutterwave were frozen at the request of the ARA, citing an investigation into “suspicious activities” that led to a cumulative balance exceeding $60 million.
Despite Flutterwave consistently asserting its innocence, the legal saga continued into 2023. During this period, Flutterwave’s CEO reportedly visited Kenya in an attempt to secure the release of the frozen funds. While the first case against the startup was withdrawn a month later, resulting in the release of over $50 million, the ARA retained $3 million, prompting criticism from the judge overseeing the case.
The Nairobi judge expressed disapproval, stating that maintaining a “litigation facade or decoy is inappropriate, an abuse of the court process, and an attempt at squandering the scarce judicial time.”
With the recent court decision, Flutterwave can now access the remaining $3 million. The resolution comes after the ARA withdrew its lawsuit, bringing an end to the prolonged legal dispute. Flutterwave, undeterred by the challenges faced in Kenya, has expressed its intention to pursue a payments and remittance license in the country following this positive legal outcome.
