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    Nigeria Bets Big on Digital Economy to Drive Youth Employment and Innovation

    InnovateAI 2025 Brings Global AI Conversation to Jos, Driving Tech Growth in Plateau

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    Stephen Sunday Becomes PLATEC Chairman, Set to Drive Tech Growth in Plateau State

  • FEATURED
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    How Gonana Farm is Revolutionizing Agriculture with Blockchain and Strategic Partnerships

    This Platform Wants to Ease Logistics and Shopping for Jos Residents

    Tukshopp’s Bold Move: How a New Platform is Reshaping Shopping and Logistics in Jos

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    Stephen Sunday Becomes PLATEC Chairman, Set to Drive Tech Growth in Plateau State

    PLATEC’s New Chairman Charts a Bold Course for Plateau’s Tech Future

    Jos Residents Share Their Temu Experience: 90% Got What They Ordered, But Is It Worth It?

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    Northern Nigeria’s Blockchain Revolution: A Vision for 2025 by Dinfa Dashe, Cofounder of Web3.0 Alliance LTD

    Northern Nigeria’s Blockchain Revolution: A Vision for 2025 by Dinfa Dashe, Cofounder of Web3.0 Alliance LTD

  • BLOCKCHAIN
    Ncc Restricts Binance, Other Crypto Exchange Companies in Nigeria

    Ncc Restricts Binance, Other Crypto Exchange Companies in Nigeria

    Popular Cryptocurrency Coins in the Blockchain space in Nigeria

    Popular Cryptocurrency Coins in the Blockchain space in Nigeria

    Egon Blockchain Sponsors Maiden Edition of Webfest 3.0 2023.

    Egon Blockchain Sponsors Maiden Edition of Webfest 3.0 2023.

    Binance now accepts Naira Deposits and Withdrawals

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    Cardano Accelerator Adaverse Invests in Afriguild’s Mission to Onboard Africans Into Web3

    Is Africa Ready to Operate a Digital Monetary Policy?

    Is Africa Ready to Operate a Digital Monetary Policy?

  • FINANCE
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    Union Bank Increases Salaries by 40% to Cushion Employees Against Inflation

    Ncc Restricts Binance, Other Crypto Exchange Companies in Nigeria

    Ncc Restricts Binance, Other Crypto Exchange Companies in Nigeria

    Naira Weakens as Banks Experience Sharp Decline in Dollar Sales.

    Naira Weakens as Banks Experience Sharp Decline in Dollar Sales.

    New Years resolution: Opay Underlines 2023 Successes and Reveals Plans for 2024

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    Canza Acquires $2.3 Million to Obtain License Across Africa

    Canza Acquires $2.3 Million to Obtain License Across Africa

    Nigerian Exchange Soars: A Detailed Look at the Recent Surge in Trading and Investor Confidence.

    Nigerian Exchange Soars: A Detailed Look at the Recent Surge in Trading and Investor Confidence.

  • START UPS
    This Platform Wants to Ease Logistics and Shopping for Jos Residents

    This Platform Wants to Ease Logistics and Shopping for Jos Residents

    Why 49% of Nigerian Startups Earn Less Than ₦10 Million Annually

    Why 49% of Nigerian Startups Earn Less Than ₦10 Million Annually

    ICIDAT technology sets to Launch Innovative Tech Project in IDP Camps; Orphanages come 2025

    ICIDAT technology sets to Launch Innovative Tech Project in IDP Camps; Orphanages come 2025

    Axia Hub Launches New Co-Working Space to Boost Tech Ecosystem in Jos

    Co-working Spaces: The Future of Jos’ Growing Tech Ecosystem – A Deeper Insight with Axia Hub

    Axia Hub Launches New Co-Working Space to Boost Tech Ecosystem in Jos

    Axia Hub Launches New Co-Working Space to Boost Tech Ecosystem in Jos

    Top 5 Nigerian Edtech Startups

    Top 5 Nigerian Edtech Startups

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  • NEWS
    Nigeria Bets Big on Digital Economy to Drive Youth Employment and Innovation

    Nigeria Bets Big on Digital Economy to Drive Youth Employment and Innovation

    InnovateAI 2025 Brings Global AI Conversation to Jos, Driving Tech Growth in Plateau

    InnovateAI 2025 Brings Global AI Conversation to Jos, Driving Tech Growth in Plateau

    Polaris, Keystone Exploring Mergers Amid CBN’s Capitalization Push

    Polaris, Keystone Exploring Mergers Amid CBN’s Capitalization Push

    SeamlessHR Expands into Nigeria’s $720M Public Sector Market

    SeamlessHR Expands into Nigeria’s $720M Public Sector Market

    Dr. Cletus Shurkur Appointed Commissioner for Science & Tech as Governor Mutfwang Reshuffles Cabinet

    Dr. Cletus Shurkur Appointed Commissioner for Science & Tech as Governor Mutfwang Reshuffles Cabinet

    Stephen Sunday Becomes PLATEC Chairman, Set to Drive Tech Growth in Plateau State

    Stephen Sunday Becomes PLATEC Chairman, Set to Drive Tech Growth in Plateau State

  • FEATURED
    How Gonana Farm is Revolutionizing Agriculture with Blockchain and Strategic Partnerships

    How Gonana Farm is Revolutionizing Agriculture with Blockchain and Strategic Partnerships

    This Platform Wants to Ease Logistics and Shopping for Jos Residents

    Tukshopp’s Bold Move: How a New Platform is Reshaping Shopping and Logistics in Jos

    Kingsley Onyeagusi: The Visionary Powering Technoomni’s Global EdTech Revolution

    Kingsley Onyeagusi: The Visionary Powering Technoomni’s Global EdTech Revolution

    Stephen Sunday Becomes PLATEC Chairman, Set to Drive Tech Growth in Plateau State

    PLATEC’s New Chairman Charts a Bold Course for Plateau’s Tech Future

    Jos Residents Share Their Temu Experience: 90% Got What They Ordered, But Is It Worth It?

    Jos Residents Share Their Temu Experience: 90% Got What They Ordered, But Is It Worth It?

    Northern Nigeria’s Blockchain Revolution: A Vision for 2025 by Dinfa Dashe, Cofounder of Web3.0 Alliance LTD

    Northern Nigeria’s Blockchain Revolution: A Vision for 2025 by Dinfa Dashe, Cofounder of Web3.0 Alliance LTD

  • BLOCKCHAIN
    Ncc Restricts Binance, Other Crypto Exchange Companies in Nigeria

    Ncc Restricts Binance, Other Crypto Exchange Companies in Nigeria

    Popular Cryptocurrency Coins in the Blockchain space in Nigeria

    Popular Cryptocurrency Coins in the Blockchain space in Nigeria

    Egon Blockchain Sponsors Maiden Edition of Webfest 3.0 2023.

    Egon Blockchain Sponsors Maiden Edition of Webfest 3.0 2023.

    Binance now accepts Naira Deposits and Withdrawals

    Binance now accepts Naira Deposits and Withdrawals

    Cardano Accelerator Adaverse Invests in Afriguild’s Mission to Onboard Africans Into Web3

    Cardano Accelerator Adaverse Invests in Afriguild’s Mission to Onboard Africans Into Web3

    Is Africa Ready to Operate a Digital Monetary Policy?

    Is Africa Ready to Operate a Digital Monetary Policy?

  • FINANCE
    Union Bank Increases Salaries by 40% to Cushion Employees Against Inflation

    Union Bank Increases Salaries by 40% to Cushion Employees Against Inflation

    Ncc Restricts Binance, Other Crypto Exchange Companies in Nigeria

    Ncc Restricts Binance, Other Crypto Exchange Companies in Nigeria

    Naira Weakens as Banks Experience Sharp Decline in Dollar Sales.

    Naira Weakens as Banks Experience Sharp Decline in Dollar Sales.

    New Years resolution: Opay Underlines 2023 Successes and Reveals Plans for 2024

    New Years resolution: Opay Underlines 2023 Successes and Reveals Plans for 2024

    Canza Acquires $2.3 Million to Obtain License Across Africa

    Canza Acquires $2.3 Million to Obtain License Across Africa

    Nigerian Exchange Soars: A Detailed Look at the Recent Surge in Trading and Investor Confidence.

    Nigerian Exchange Soars: A Detailed Look at the Recent Surge in Trading and Investor Confidence.

  • START UPS
    This Platform Wants to Ease Logistics and Shopping for Jos Residents

    This Platform Wants to Ease Logistics and Shopping for Jos Residents

    Why 49% of Nigerian Startups Earn Less Than ₦10 Million Annually

    Why 49% of Nigerian Startups Earn Less Than ₦10 Million Annually

    ICIDAT technology sets to Launch Innovative Tech Project in IDP Camps; Orphanages come 2025

    ICIDAT technology sets to Launch Innovative Tech Project in IDP Camps; Orphanages come 2025

    Axia Hub Launches New Co-Working Space to Boost Tech Ecosystem in Jos

    Co-working Spaces: The Future of Jos’ Growing Tech Ecosystem – A Deeper Insight with Axia Hub

    Axia Hub Launches New Co-Working Space to Boost Tech Ecosystem in Jos

    Axia Hub Launches New Co-Working Space to Boost Tech Ecosystem in Jos

    Top 5 Nigerian Edtech Startups

    Top 5 Nigerian Edtech Startups

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What could Flutterwave and Chipper Cash’s no-license in Kenya mean?

by Ajifa Solomon
July 29, 2022
in Business, FINANCE
Reading Time: 5 mins read
0
What could Flutterwave and Chipper Cash’s no-license in Kenya mean?
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After operating 7 years collectively as cross border payments processors, the Central Bank of Kenya (CBK), said Flutterwave Inc. and Chipper Cash are not licensed to operate.

“Flutterwave is not licensed to operate as a remittance provider or for that matter as a PSB service provider in Kenya. They are not licensed to operate and therefore they shouldn’t be operating. We can also say the same for Chipper Cash,” CBK’s Governor, Patrick Njoroge, said yesterday (July 28) in Nairobi.

This comes after a court in Kenya  froze more than $40 million in 52 bank  accounts owned by Flutterwave over money laundering charges leveled up against it by the Kenyan Assets Recovery Agency (ARA).

Flutterwave in Kenya

  • Flutterwave, a Pan-African financial technology company founded in 2016 by Iyin Aboyeji and Olugbenga Agboola (GB) launched its flagship product, Barter in Kenya in 2018. 
  • A fresh wave of scandal recently hit the fintech giant after ARA stated that there was neither evidence of retail transactions from customers paying for goods and services. Furthermore, there was no evidence of settlements to the alleged merchants. 
  • Flutterwave quickly debunked the claims, saying they were politically motivated up close to Kenya’s presidential Elections.
  • The fintech giant also said that it maintains the highest regulatory standards in its operations. “Our Anti-money laundering (AML) practices and operations are regularly audited by one of the big 4 firms,” the company posited in a blog post.

Chipper Cash 

  • Chipper Cash, a free cross-border payments processor founded in 2018, the fintech company recently raised $100 million in a Series C round with Jeff Bezos as an investor. Leonn Kiptum, the Country Director for Chipper Cash in Kenya, had earlier in January told HapaKenya that the company had applied for  the International Money Transfer Operator (IMTO) License and  was “waiting to be issued with because we have met all the requirements.”
  • CBK’s statement now shows that the license has yet to be issued.

Implications of the statement:

This explainer is based on a  two-sentence hint, leaving room for wild guesses. And while we await further insights from CBK and the companies mentioned,  here’s what you should know:

  • There are a diverse bodies that regulate fintech products and services in Kenya, the Central Bank of Kenya; the Communications Authority of Kenya; the Capital Markets Authority; and the Competition Authority.
  • The CBK is the top license issuer in mobile money products and exercises oversight directly over payment service providers. Fintechs are also cautioned to actively exercise due diligence and conduct constant legal compliance audits to avoid violating the law.

What does this mean?

Becoming a payments processor is no easy undertaking and Kenya as any other society regulates the players in the industry to protect the data and privacy of users, prevent fraud and ensure the safety of payments. This is to  To become a licensed player, CBK (PDF) highlighted the procedures including;

  • An application for authorisation to CBK and a 30-day period to ensure the complete certificate.
  • Approval of company name and product
  • Authorisation of company and other legal courses.
  • A two-month renewal window before expiry of license.

These processes are rigorous to ensure companies deliver efficiently. And for foreign companies, the screw is tightened more to include historical background of the foreign entity, other Letter of no Objection from the Home Supervisory as well as other checks.

This means that no payments processor can survive long without any license and 7 years is too long a time to lax. It leaves to be wondered if:

  • Flutterwave and Chipper Cash in a highly implausible sense was never at any time licensed to process payment.
  • Or did their licenses expire as CBK states that licences must be renewed 2 months before expiry?

Is it then possible to operate in Kenya without a license?

In a series of tweets, Osaretin Victor Asemota, co-founder of SwiftaCorp, a technology service delivery company,  explained that CBK only recently in June 2021 began issuing licenses to age-long payments processors in Kenya.

Related

Tags: CBKChipper CashFlutterwave
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