The Central Bank of Kenya has ordered commercial banks, microfinance banks, and mortgage finance companies to immediately end their partnerships with fintech unicorns, Flutterwave and Chipper Cash.
Matu Mugo, deputy director of bank supervision at the CBK, says the two companies have been engaging in Money Remittance and Payment Services without licensing and authorisation by CBK.
Flutterwave however says that it entered Kenya through a partnership with banks and mobile operators licensed by the Central Bank of Kenya.
The company also claimed that it submitted an application to operate as a payment service provider in the country and has been in constant engagement with the CBK to ensure that it provides all the requirements for licensing and is consequently awaiting the issuance of the license.