It has been reported that the Nigerian fintech unicorn known as Flutterwave has stated that it has applied to the Central Bank of Kenya for a license to operate as a payment service provider in 2019. The financial technology company also stated that it has maintained continuous communication with the government regulators and is optimistic that it will be granted a license.
Allegations Regarding Fintech
According to statements made by the company, the Nigerian financial technology behemoth Flutterwave applied for an operating license with the Central Bank of Kenya (CBK) in the year 2019. After the Central Bank of Kenya made the decision to prevent Kenyan financial institutions from conducting business with fintech companies, Flutterwave made the step to allay worries that it may be operating in an illegal manner.
The directive that the CBK issued to financial institutions was issued shortly after CBK governor Patrick Njoroge told journalists that Flutterwave and Chipper Cash were operating money remittance businesses without licensing and authorization from the central bank. This was previously reported by Bitcoin.com News. The Asset Recovery Agency in Kenya also made allegations along these lines, and as a result, that organization blocked Flutterwave’s bank accounts, which together held more than fifty million dollars.
Flutterwave reportedly responded to reports of the fintech’s licensing issues in Kenya by suggesting that its entry into this market had been “through partnerships with banks and mobile network operators licensed by the Central Bank of Kenya.” This statement was made after reports of the fintech’s licensing issues in Kenya became public.
However, according to a report by Business Daily, Flutterwave now claims that in addition to applying for an operating license, it has also worked with the CBK and is still waiting to receive the license. This news comes after Flutterwave previously stated that it had applied for an operating license.
“In 2019, as a result of the expansion of our business activities, Flutterwave applied for a license to operate as a payment service provider. According to a statement that was apparently published by the financial technology company, “We have been in continual communication with the Central Bank of Kenya to ensure that we provide all of the requirements and we look forward to acquiring our license.”