The Central Bank of Kenya (CBK) has warned consumers against engaging with fintech payments Flutterwave and Chipper Cash.
In a letter sent to all chief executives of regulated financial institutions on Friday, CBK‘s deputy Director of Supervision, Matu Mugo, directed the banks to confirm within seven days of the date (29th July 2022) of the letter to confirm to the regulator on their compliance with the directive.
“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 authorisation by CBK.
“Money Remittance Services in Kenya are regulated according to the Central Bank of Kenya Act and the Money Remittance Regulations, 2013. Furthermore, payment services in Kenya are regulated under the National Payment System Act and the National Payment System Regulations, 2014.
“You are therefore directed to cease and desist from dealing with Flutterwave and Chipper immediately.
Flutterwave and Chipper Cash not Licensed to Operate in Kenya
Flutterwave Responds
“In 2019, as our operations grew, Flutterwave submitted its application for a Payment Service Provider licence,” a statement reads.
“We have been in constant engagement with the Central Bank of Kenya to ensure that we provide all the requirements, and we look forward to receiving our licence.
“We are committed to operating within the stipulated laws, regulations and industry standards in Kenya.
“We are understanding and respectful of the Central Bank of Kenya’s responsibility to protect the payments ecosystem.”
