The Central Bank of Kenya has asked financial institutions in the country to cease operating with two FinTech companies in the country, Flutterwave and Chipper Technologies.
The CBK, made this known in a letter addressed to the financial institutions on Friday.
Reports indicate that the decision of the CBK follows a resolution reached at the end of a Monetary Policy Committee meeting held on Wednesday which observed that both firms were not licensed to operate.
According to the bank, both firms have no license to operate payment and Remittance services in the country.
“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 authorization by CBK,” the letter read.
Recall that Flutterwave was indicted in a recent allegation by authorities in Kenya, for alleged money laundering, leading a Kenyan court to order the freezing of the company’s account.
The allegation has since been refuted by Flutterwave, describing the claims as false and baseless.
Flutterwave, in its response to the claims, said that it has verifiable evidence that would clear the firm of the allegations.