In a letter addressed to the CEOs of financial institutions, the Central Bank of Kenya (CBK) has said financial institutions operating in the country must cease and desist from dealing with two Nigerian fintechs, Flutterwave and Chipper Cash. The letter reiterates the CBK governor Patrick Njoroge and the Asset Recovery Agency (ARA)’s assertions that the two companies are not licensed to operate in Kenya.
While Flutterwave suggested in its statement that is working with the regulators, Njoroge’s remarks and the CBK’s subsequent letter to CEOs of Kenyan financial institutions dated July 29, reiterate ARA’s allegations that Flutterwave is engaged in “money remittance and payment services without licensing and authorization.”
Meanwhile, in addition to informing the heads of the Kenyan financial institutions about the two fintechs’ operating license status, the letter also demands the CEOs to confirm their compliance with the order within seven days.
“You are therefore directed to immediately cease and desist from dealing with Flutterwave and Chipper. You are thereafter required, within seven days of the date of the letter to confirm to CBK your compliance with the directive,” the CBK’s letter reads.
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