Kenya’s apex bank, the Central Bank of Kenya (CBK), has instructed commercial banks in the country to stop dealing with Nigerian fintechs, Flutterwave Payment Technology and Chipper Technologies.
The CBK gave the instruction in a circular signed by Matu Mugo, deputy director, bank supervision.
The bank accused the fintechs of operating in the country illegally.
Specifically, the CBK accused both entities of engaging in Money Remittance and Payment Services without licensing and authorisation.
The circular reads, “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 pursuant to the Central Bank of Kenya Act and the Money Remittance Regulations, 2013. Further, Payment Services in Kenya are regulated pursuant to the National Payment System Act and the National Payment System Regulations, 2014.
“You are therefore directed to immediately cease and desist from dealing with Flutterwave and Chipper.
“You are thereafter required, within seven (7) days of the date of the letter to confirm to CBK your compliance with the directive.”