Central Bank of Kenya (CBK), Kenya’s apex bank, has instructed commercial banks in the country to stop dealing with Nigerian fintechs, Flutterwave Payment Technology and Chipper
The CBK gave the instruction in a circular signed by Matu Mugo, deputy director, bank supervision.
The bank accused the fintechs of operating in the country illegally.
The CBK had last month frozen the accounts of Futterwave over allegations of fraud, which the Nigerian fintech denied.
Specifically, the CBK accused both entities of engaging in Money Remittance and Payment Services without licensing and authorisation.
The circular reads, “It has come to the attention of the Central Bank of Kenya (CBK) that Flutterwave Payments Technology Limited (Flutterwave) and Chipper Technologies Kenya Limited (Chipper) have been engaging in Money Remittance and Payment Services without licensing and authorisation by CBK. Money Remittance Services in Kenya are regulated pursuant to the Central Bank of Kenya Act and the Money Remittance Regulations, 2013. Further, Payment Services in Kenya are regulated pursuant to the National Payment System Act and the National Payment System Regulations, 2014.
“You are therefore directed to immediately cease and desist from dealing with Flutterwave and Chipper.
“You are thereafter required, within seven (7) days of the date of the letter to confirm to CBK your compliance with the directive.”