Korapay and Kandon Kleared

Four months after Kenya’s Asset Recovery Agency (ARA) accused Korapay and Kandon of fraud, charges against the Nigerian fintechs have been dropped.

ICYMI: In July, the ARA froze the businesses’ accounts on the suspicion that they brought over $50 million (Ksh 6 billion) into Kenya as part of a money laundering scheme. ARA froze $249,990 (Ksh 29.5 million) held in Korapay’s Equity Bank account while Kandon Technologies had $126,800 (Ksh 15 million) in two UBA accounts.

At the time, the ARA had charged the two fintechs with fraud and international money laundering. Five other firms were indicted in this legal trouble, including Nigerian businesses Boxtrip Travels and Tours, Bagtrip Travels Ltd, and fintech unicorn Flutterwave.

Both fintechs maintained their innocence when the charges were levied, with Kora’s chief operations officer, Gideon Orovwiroro, stating, “We are confident that the Kenyan courts will come to see that the accusations against us are not only wholly baseless but borderline malicious.”

And now?

Four months into the six-month freeze, the ARA and the Directorate of Criminal Investigations (DCI) have withdrawn the allegations.

In one court document, which was drawn and filed on October 19, 2022 by state counsel, Stephen Githinji, on behalf of the ARA director, the agency said that it has withdrawn its lawsuit in its entirety.

In another document issued by the Directorate of Criminal Investigation (DCI) on September 11, and addressed to Wetangula, Adan & Company Advocates, Kora’s Kenyan solicitor, the agency said there’s currently no evidence to prove the payment company is guilty of money laundering or card fraud.

“We have always maintained that we have done nothing wrong. As a liquidity management startup offering treasury solutions and alternative trading, we always facilitate transactions for many of our partners doing legitimate business through licensed commercial banks in Kenya. We have records of these transactions, which are available and can be verified,” CEO of Kandon Technologies, Ayodele said.

Korapay also announced that it would engage relevant authorities in order to obtain relevant licences and operational permits in Kenya.