Table of Contents
- CBK warns against Flutterwave and Chipper Cash in Kenya.
- How did Flutterwave and Chipper Cash expand to Kenya?
CBK warns against Flutterwave and Chipper Cash in Kenya
The two rapidly expanding African companies, Flutterwave and Chipper Cash, are unlicensed to be unable to do business in Kenya by the Central Bank of Kenya (CBK).
CBK Governor Patrick Njoroge claims that two fintech businesses are not permitted to conduct business in Kenya. To the dismay of regulators who accuse them of expanding fraud and moving illicit assets, the two unicorns, backed by wealthy Western investors, have recently expanded throughout the continent. In answer to inquiries from the Monetary Policy Committee (MPC) on Wednesday, CBK Governor Patrick Njoroge said the two businesses are not licensed to operate remittance operations or offer payment services to merchants in the country.
The Assets Recovery Authority’s (ARA) investigation into money laundering will focus on Flutterwave. The High Court froze 62 bank accounts totaling more than Sh6.2 billion that belonged to the company and four Kenyans at the beginning of this month.
How did Flutterwave expand to Kenya
Through a collaboration with KCB Bank, Flutterwave grew into Kenya in 2016. To support its operations and infrastructure in the area, the fintech startup makes use of alliances with Airtel Money, MTN’s MoMo, and Amole. Flutterwave and Chipper Cash are both being ignored by CBK. The East Africa area has been referred to as an “important market” by Flutterwave in the past. A PSP license, which enables you to have a wallet, and an IMTO license, which permits international money transfers, are required for the fintech startup to operate in Kenya, according to Kiptum.