Kenya drops fraud case against 4th Nigerian fintech firm Korapay Technologies
The Assets Recovery Agency has dropped a Sh30 million lawsuit against another Nigerian fintech company, Korapay Technologies Limited, which had been linked to online fraud by local authorities
The Assets Recovery Agency (ARA) has dropped a Sh30 million lawsuit against another Nigerian fintech company, Korapay Technologies Limited, which had been linked to online fraud by local authorities.
The move comes three months after the agency withdrew a lawsuit against three other Nigerian com-panies -Avalon Offshore Logistics Limited, OIT Africa Limited and RemX Capital Limited - which were at the centre of an international money laundering syndicate and were at risk of losing Sh5.7 billion to the State as proceeds of crime.
Another company, Kandon Technologies Limited whose Sh15 million had been frozen over the same allegations of fraud, also got a reprieve last month after ARA dropped the case.
So far the State agency has withdrawn fraud-related cases against five Nigerian fintech companies, the latest being Korapay. All faced allegations of money laundering and card fraud.
ARA had claimed the Nigerian firms were shell companies incorporated in Kenya for purposes of taking advantage of the liberal financial system to launder funds from foreign jurisdictions whose sources are not legitimate.
It claimed that the companies were linked to five other Nigerian entities whose 62 bank accounts with Sh6.2 billion were frozen in July 2022 over allegations that they engaged in card fraud and international money laundering.
They are Flutterwave Ltd, Elivalat Fintech Ltd, Hupesi Solutions, Boxtrip Travels and Tours, Bagtrip Travels Ltd and Cruz Ride Auto Ltd.
The State agency has already filed a notice of withdrawal of the suit lodged against Korapay Technolo-gies Limited. The notice is signed by State counsel Stephen Githinji. It has not explained reasons for the withdrawal.
