Central Bank of Kenya (CBK) says that Chipper Cash and Flutterwave are carrying out payments and also engaging in remittances yet they are not licensed by Bank of Kenya to carry out payments or engage in money remittances.
The directive was released by CBK on July 29th to all Commercial Banks, Microfinance and Mortgage Finance Companies signed by Matu Mugo who is the Deputy Director Bank Supervision, CBK.
“It has come to the attention of the 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 the licensing and authorization by CBK.” CBK said in a statement.
They went ahead to order all banks to refrain from transacting with the two companies since the two are neither licensed by CBK to engage in remittances pursuant to the Central Bank of Kenya Act and Money Remittance Regulations 2013 nor are they registered to make payments pursuant to the National Payment Systems regulations, 2014.
Chipper Cash and Flutterwave are African founded Fintech’s that enable users to send and receive money from other app users in countries where they have operations. The companies also allow users to make payments especially Airtime purchases, data bundle purchase and payment of utilities.
CBK ordered Banks to within 7 days confirm to stopping all transactions with the aforementioned companies.
“You are therefore directed to immediately cease and desist from dealing with Flutterwave…….required within seven (7 days) of the date of the letter to confirm to CBK your compliance with the directive.” Concluded the statement.
The Nigerian Fintech Flutterwave however, says that they applied for a payment service provider (PSP) license in 2019 providing all necessary paper work but Central Bank of Kenya has prolonged the issuance.
“In 2019, as our operations grew, Flutterwave submitted its application for a payment service provider license,” said the firm in a statement.
“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 license.”