After the Central Bank of Kenya (CBK), Kenya’s monetary authority, said that Chipper Cash and Flutterwave were not licensed to operate in the East African country, the regulator directed all financial institutions to stop trading with the two fintechs Is.
CBK Deputy Director of Bank Supervision, Matu Mugo directed all regulated banks, microfinance and mortgage finance institutions to halt their partnerships with two startups with immediate effect – in a blow to Flutterwave and Chipper Cash, some of Africa’s most valuable startups .
The letter to the CEO follows remarks by CBK Governor Patrick Njoroge, that the two startups are not licensed remittance or payment service providers in Kenya – one of the largest fintech hubs in Africa.
“It has come to the notice of the Central Bank of Kenya (CBK) that Flutterwave Payments Technology Limited and Chipper Technologies Kenya (Chipper) engage in remittance and payment services without license and authorization by CBK… Stop and stay away from dealing with Flutterwave and Chipper,” Mugo said in the letter.
Flutterwave, which is also facing money laundering charges in Kenya, said in a statement Told It is working through partnerships with regulated banks and telcos in the country, as it awaits a payment service provider license for which it applied in 2019.
Flutterwave, which recently raised $250 million at a $3 billion valuation, facilitates cross-border payment transactions from small to large businesses in Africa via an API. Some of its international customers include Booking.com, Flywire and Uber. In a February interview with Meczyki.Net, the African payments giant, with access to an infrastructure in 34 countries across the continent, said it was processing 200 million transactions worth more than $16 billion.
Chipper Cash is also a cross-border payments company with operations in Nigeria, Ghana, Uganda, Nigeria, Tanzania, Rwanda and South Africa.