Fintechs in Kenya Face Severe Consequences From CBK for Dealing Without Licensing or Authorisation

of Central Bank of Kenya (CBK) has instructed financial institutions and microfinance institutions to stop doing business with fintech companies. flutter wave When Chipper cashaccording to media reports.

CBK said in a letter to the chief executives of commercial banks, microfinance companies and mortgage finance companies that the two start-ups were engaged in remittance business without the necessary permits from banking authorities.

“It came to the attention of CBK that Flutterwave Payments Technology Ltd and Chipper Technologies Ltd were engaged in money transfer business without CBK’s license and approval,” the letter cites. kenya business daysaid.

The move comes days after the CBK governor Patrick Nyoroge told the media at monetary policy committee The two fintech companies are not licensed to offer remittance and payment services in the country.

Money transfer services in Kenya are regulated under the Central Bank of Kenya Act and the Money Transfer Regulations, 2013. Money transfer services are regulated under the National Payment Systems Act and the National Payment Systems Regulations 2014.

In a statement, Flutterwave said it hopes to obtain the requested licenses in 2019 soon.

Fintechs in Nigeria have reiterated their commitment to operate within Kenyan laws, regulations and industry standards.

“We understand and respect the responsibility of the Central Bank of Kenya to protect the payments ecosystem. We support cooperation with the

This is not the first time Flutterwave has had close ties with Kenyan authorities. In July 2022, a Kenyan court suspended more than $40 million of his accounts belonging to Flutterwave under the country’s anti-money laundering laws.

According to Kenya’s statement asset recovery agencyFlutterwave is one of seven companies suspected of being used as conduits for card fraud at banks under the guise of offering merchant services.

  • Francis Bignell

    Francis is a journalist with a BA in Classical Civilizations and a professional interest in North and South America.

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