Kenya's High Court Freezes over Sh6 Billion Linked to Nigerian Fintech Start-up Flutterwave

The High Court in Nairobi has frozen over Sh6.2 billion held in 62 bank accounts linked to Nigerian fintech start-up Flutterwave over claims that they are proceeds of card fraud and money laundering.

Business Daily reported that the court froze the money in GTB Bank, Equity, EcoBank, KCB and Co-operative Bank accounts following a petition filed by the Assets Recovery Agency (ARA) seeking to have it forfeited to the government.

“That the 1st Respondent’s bank accounts received billions in a suspected scheme of money laundering and the same deposited in different bank accounts in an attempt to conceal or disguise the nature, source, location, disposition or movement of the said funds,” ARA says in court documents.

“The transactions were done using cards issued by the same bank, at the same point, on the same day, raising suspicion of card fraud.”

Investigators established that the Nigerian start-up has Sh5.17 billion in 29 accounts at GTB, Equity and Eco Bank in Kenya shillings, US dollars, Euros and Sterling pounds.

The High Court further froze Sh467.1 million belonging to Boxtrip Travels and Tours, Sh436 million in Bagtrip Travels Ltd accounts, Elivalat Fintech Ltd (Sh1.16 million), Hupesi Solutions (Sh1.6 million), and Cruz Ride Auto Ltd (Sh2.4 million).

ARA noted that the funds were sent to local bank accounts owned by Flutterwave from multiple countries and then rechanneled to the six companies.

Flutterwave Payments Technology ltd is owned by Nigerians Olugbenga Agboola, Adeleke Christopher, Iynoluwa Samuel, and Flutterwave Inc which is registered in the US, according to court filings. Kenyan David Mouko Elizaphan Omaanya is also a director but has zero shares. 

Court records show that Sh12.4 billion was wired to a singer Flutterwave account at Equity Bank between November 2020 and this year before being transferred to Rem X Ltd, which is owned by Nehikhare Eghosasere and Demuren Olufemi Olukunmi.

ARA believes the accounts were used as conduits for moving illicit cash as there was no explanation or supporting documents provided to support the transactions.

“Further investigations established that there are reasonable grounds to believe that the funds are proceeds of crime obtained from illegitimate sources by the respondent which require to be preserved pending the filing and hearing of an intended forfeiture application,” the agency submitted.