kenya directs all banks to stop dealing with chipper cash, flutterwave, saying they are unlicensed

A day after Central Bank of Kenya (CBK), Kenya’s monetary authority, said that Chipper Cash and Flutterwave were not licensed to operate in the East African country, the regulator has directed all financial institutions to cease doing business with the two fintechs.

The CBK’s bank supervision deputy director, Matu Mugo, directed all regulated banks, microfinance and mortgage finance institutions to stop their partnerships with the two startups with immediate effect — dealing a blow to Flutterwave and Chipper Cash, some of Africa’s highest valued startups.

The letter to the CEOs followed remarks by CBK’s governor, Patrick Njoroge, that the two startups are not licensed remittance or payment service providers in Kenya — one of the biggest fintech hubs in Africa.

“It has come to the attention of the Central Bank of Kenya (CBK) that Flutterwave Payments Technology Limited and Chipper Technologies Kenya (Chipper) have been engaging in money remittance and payments services without licensing and authorization by CBK…You are therefore directed to immediately cease and desist from dealing with Flutterwave and Chipper,” said Mugo in the letter.

Flutterwave, which is also facing money laundering allegations in Kenya, in a statement said it has been operating in the country through partnerships with regulated banks and telecoms, as it waits for a payments service provider license it applied for in 2019.

Flutterwave, which recently raised $250 million at a $3 billion valuation, facilitates cross-border payments transactions of small to large businesses in Africa via one API. Some of its international clients include Booking.com, Flywire and Uber. In a February interview with TechCrunch, the African payments giant, with an infrastructure reach across 34 countries on the continent, said it was processing 200 million transactions worth more than $16 billion.

Chipper Cash is also a cross-border payments company with operations in Nigeria, Ghana, Uganda, Nigeria, Tanzania, Rwanda and South Africa.

TECH NEWS RELATED

It might be time for companies in San Francisco to call employees’ bluff

Spend any amount of time in New York, and you’ll feel it. Manhattan and Brooklyn are teeming with activity. It’s electrifying to be there after years spent relatively locked down. The question, and one asked this week by the San Francisco Chronicle, is why San Francisco isn’t bouncing back ...

View more: It might be time for companies in San Francisco to call employees’ bluff

Daily Crunch: Samsung’s vice chairman receives presidential pardon for bribery conviction

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here. Last night was a full moon, somehow it’s already halfway through August, and did you know there’s a Beach Plum LaCroix flavor? The world’s gone topsy-turvy, but ...

View more: Daily Crunch: Samsung’s vice chairman receives presidential pardon for bribery conviction

TrashBot uses AI to sort recyclables

There are a number of startups working to improve trash sorting with robots. AMP Robotics is near the top of the list, coupling a picker and a conveyor belt to sort materials in large, automated facilities. The technology aims to correct human shortcomings when it comes to recycling. Too ...

View more: TrashBot uses AI to sort recyclables

The Silicon Peach is still ripe: Atlanta’s venture ecosystem stands strong

Atlanta’s venture ecosystem is looking pretty peachy. In H1 2022, Atlanta companies raised $1.6 billion in funding, according to a recent PitchBook report. If the second half of the year is the same, it places the city on track to nearly hit the $3.7 billion in capital it raised ...

View more: The Silicon Peach is still ripe: Atlanta’s venture ecosystem stands strong

Hands-on with Lockdown Mode in iOS 16

Lockdown Mode is a new Apple feature you should hope you’ll never need to use. But for those who do, like journalists, politicians, lawyers and human rights defenders, it’s a last line of defense against nation-state spyware designed to punch through an iPhone’s protections. The new security feature was announced ...

View more: Hands-on with Lockdown Mode in iOS 16

EV laggards BMW and Toyota to partner on hydrogen fuel cell vehicles

BMW and Toyota will team up to produce hydrogen fuel cell vehicles starting mid-decade, according to a report in Nikkei Asia. The two will begin producing and selling hydrogen fuel cell vehicles developed jointly as early as 2025, BMW sales chief Pieter Nota told the publication. The automakers have ...

View more: EV laggards BMW and Toyota to partner on hydrogen fuel cell vehicles

This startup is setting a DALL-E 2-like AI free, consequences be damned

DALL-E 2, OpenAI’s powerful text-to-image AI system, can create photos in the style of cartoonists, 19th century daguerreotypists, stop-motion animators and more. But it has an important, artificial limitation: a filter that prevents it from creating images depicting public figures and content deemed too toxic. Now an open source alternative ...

View more: This startup is setting a DALL-E 2-like AI free, consequences be damned

The subscription pie is getting bigger: How to leverage usage-based billing

Sanjay Manchanda Contributor Share on Twitter Sanjay Manchanda is CMO of Chargebee. He has helped build a multibillion dollar SaaS business, scale new product businesses and delivered go-to-market and demand-gen strategies at Box and Microsoft. Challenging times for the tech and consumer industries have created a lot of buzz around ...

View more: The subscription pie is getting bigger: How to leverage usage-based billing

FWD: fwd: From the CEO: BeCareful while you BeReal!

As other startups slash spending and hoard cash, Databricks hits accelerator

Nothing negative about Positive Food’s meal expansion plan after $7M investment

Diagnostic Robotics has AI catching health problems before they take you to the ER

Wire grabs fresh funding for secure messaging tech that’s big with G7 governments

Instacart’s latest feature lets you order from two retailers with one delivery fee

Hyundai announces $400M AI, robotics institute powered by Boston Dynamics

Felicis, Lux Capital and Upfront Ventures tackle TAM at Disrupt

Open source software is needed to prevent future crypto hacks, Polygon CISO says

Identifying underserved market segments with Ethena and Homebrew on TechCrunch Live

The best cloud unicorns aren’t as overvalued as you might think

Some frank advice for open-source startups seeking product-market fit

OTHER TECH NEWS

Top Car News Car News