On Friday, the Central Bank of Kenya (CBK) directed Kenyan commercial banks to cease engaging with Nigerian fintech firms Flutterwave Payment Technology and Chipper Technologies.
The CBK, in a circular signed by Matu Mugo, deputy director of bank supervision, accused the fintech of operating unlawfully in the nation. This comes amid questions surrounding Flutterwave and Chipper’s operations in the East African country. The CBK had frozen Futterwave’s accounts last month due to allegations of money laundering, which the company rejected.
The CBK specifically accused both firms of providing Money Remittance and Payment Services without proper license and authorization.
The circular reads, “It has come to the attention of the Central Bank of Kenya (CBK) that Flutterwave Payments Technology Limited (Flutterwave) and Chipper Technologies Kenya Limited (Chipper) have been engaging in Money Remittance and Payment Services without licensing and authorisation by CBK.
“Money Remittance Services in Kenya are regulated according to the Central Bank of Kenya Act and the Money Remittance Regulations, 2013. Further, Payment Services in Kenya are regulated under the National Payment System Act and the National Payment System Regulations, 2014.
“You are therefore directed 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.”
Kenya’s Central Bank bars banks from dealing with Flutterwave, Chipper Cash.
