Flutterwave, the African fintech company, has been exonerated in Kenya as the high court granted the Asset Recovery Agency (ARA) permission to withdraw the only remaining case against the payments firm. This decision brings relief to Flutterwave, which is actively pursuing a payments service provider and remittances license from the Central Bank of Kenya, following a flagging for operating without one last year. The withdrawal also aligns with Flutterwave's expansion efforts in the country.

The ARA withdrew the case based on further investigations that revealed Flutterwave's non-involvement in criminal activities, including money laundering and fraud. The judge, in his ruling, stated,

"After considering all the facts presented to this court, as well as my earlier ruling on the agency’s request for withdrawal of this suit, the withdrawal is hereby allowed and this suit is marked as withdrawn."

This development follows a previous instance in July when the judge initially rejected the agency's request to withdraw the case, instructing the agency's director and the investigating officer to provide detailed reasons for the withdrawal. The judge questioned why the agency, after initially presenting a substantial amount of evidence, including bank statements, claimed to lack evidence of the alleged crime.

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The ARA has now expressed satisfaction that the funds in Flutterwave's bank and mobile money accounts were not proceeds of crime. However, the judge criticized the agency for initiating the case without completing its investigations, deeming it "inappropriate, negligent, reckless, and absurd."

The court's approval for withdrawal comes with a condition: any civil or tortious liabilities arising thereafter will not be shouldered by the Kenyan government or public funds but will be the personal responsibility of the agency's director and the investigator. The judge emphasized this condition due to the "negligent, reckless, careless, and rash manner" in which the case was investigated and pursued.

As a result, Kenya is set to release the previously frozen $3 million from Flutterwave and its co-accused Adguru and Hupesi solutions. The initial case, involving $52.5 million, was closed in March after the ARA formally withdrew it.