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Kenya has cleared Nigeria’s Kora of money laundering and card fraud accusations.

Kenya has cleared Nigeria's Kora of money laundering and card fraud accusations.

Kenya has cleared Nigeria’s Kora of money laundering and card fraud accusations.

The Kenyan Asset Recovery Agency (ARA) abandoned its July claims of money laundering and card fraud against the Nigerian payment provider Korapay.

A search of the ARA website reveals that it is the Kenyan agency responsible for tracking down and recovering stolen money and other illegal gains. Both Kora and Kandon Technologies Limited, another Nigerian fintech business, had their accounts frozen by a Kenyan High Court for her illegal gains. Both Kora and Kandon Technologies Limited, another Nigerian fintech business, had their accounts frozen by a Kenyan High Court on July 14, 2022, after the agency filed two separate proceedings against them.

Two firms funded by Techstars were accused of illegally bringing in over $51 million to Kenya, totaling Sh6 billion. Therefore, the court froze $249,990 (Sh29.5 million) in an account belonging to Kora at Equity Bank and $126,841 (Sh15 million) belonging to Kandon Technologies Ltd in two accounts belonging to UBA, as per the judgment issued by Lady Justice Esther Maina. Flutterwave Ltd., Elivalat Fintech Ltd., Hupesi Solutions, Boxtrip Travels and Tours Ltd., Bagtrip Travels Ltd., Cruz Ride Auto Ltd., and Kenyan businessman Simon Karanja are among the other companies and individuals that ARA has allegedly linked to the freezing of 62 bank accounts holding more than Sh6 billion. The CEO of Flutterwave has now refuted the allegations, saying that they are politically motivated and an attempt to smear Nigerian businesses before Kenya’s next election.

Following the order issued on July 14, neither Kora nor Kandon can access the frozen accounts for the next six months or until ARA has finished its inquiries. However, two papers reviewed by the press (TechCabal) suggest that the dispute was recently resolved, after just four months.

The agency officially withdrew its complaint in its entirety in a single document drafted and submitted on behalf of the ARA director by state counsel Stephen Githinji on October 19, 2022.

The Directorate of Criminal Investigation (DCI) sent a letter on September 11 to Kora’s Kenyan attorney, Wetangula, Adan, and Business Advocates, stating that the agency had no evidence yet to indicate that the payment company committed money laundering or card fraud.

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