Flutterwave Final Lawsuit With the Kenyan Government Settled as Judge Rules in Their Favour

A High Court in Kenya has requested that the Asset Recovery Agency (ARA) drop its final lawsuit against Flutterwave. The ARA is a  commission known for seizing funds related to money laundering and fraudulent activities. 

The decision follows the court's denial of the agency's plea to withdraw its second lawsuit against the leading Nigerian fintech in July 2023.

The legal battle started when allegations involving money laundering and suspected fraudulent activities were made against Flutterwave, which led to the freezing of over $3 million belonging to Flutterwave, Adguru Technology Limited, and Huspesi Solutions in August 2022. 

It was also revealed that some side investigations were carried out, and it was discovered that there was no trace of fraudulent activities or any other illegal conduct by Flutterwave, prompting ARA to withdraw the lawsuit.

While delivering the judgement in Kenya, the judge accused the agency of filing a lawsuit without carrying out proper investigations.

He said,

• It was inappropriate, negligent, reckless, and absurd for an investigative agency to commence such serious proceedings without having completed investigations.

• After considering all the facts presented to this court, the withdrawal is hereby allowed, and this suit is marked as withdrawn.

Also, the judge imposed a condition that the investigator and the agency's director bear any potential civil liabilities “solely and personally”, citing the uncultured manner in which the case was being investigated and acted upon.

“This is given the negligent, reckless, careless, and rash manner in which this case was investigated and these proceedings were instituted and driven,” he said.

Previously, the Central Bank of Kenya flagged Flutterwave for operating without a remittance license, and this will be placed down after the settling of the final case between Flutterwave and ARA. Even with those cases still on the ground, Flutterwave has been extending its operations in Kenya as it plans to establish its primary operations in Nairobi, the capital of Kenya.

Flutterwave Has Been Redeemed

At the start of this year, Flutterwave disclosed that it's planning to establish its office in Nairobi, Kenya, as it plans to capture East Africa with its undisclosed blueprint. The fintech giant went through some tussle with the government of Kenya, having delays in receiving an operating license brought about by the ARA lawsuits, a report stated.

During the rift between Flutterwave and Kenya's Government, the ARA recovered and released funds in different segments, which included the freezing of $52 million and the subsequent release of $52.5 million following the withdrawal of the first case. The latest withdrawal of the final case against Flutterwave brings a stop to its legal challenges in Kenya.

The decision by the ARA to release $3 million previously inaccessible to Flutterwave, Adguru Technology Limited, and Huspesi Solutions was due to a lack of evidence supporting the motion of money laundering and suspected fraudulent activities.