Kenya’s Asset Recovery Agency drops money laundering charges against Nigerian companies

The news

  • The Asset Recovery Agency has dropped money laundering charges against three Nigerian companies – RemX Capital Limited, Avalon Offshore Logistics Limited and OIT Africa Limited.
  • The ARA had, in April 2022, demanded that accounts belonging to the three companies be frozen pending a motion to confiscate the funds from the government.

The Asset Recovery Agency in Kenya has dropped money laundering charges against three Nigerian companies after saying the response given regarding the source of the funds was satisfactory.

In April 2022, the agency asked a High Court to stop the transfer or withdrawal of 5.6 billion shillings ($48.6 million) belonging to the three companies.

At the time, he alleged the funds were the proceeds of money laundering with company executives backed by a powerful politician. Kenyan media reports suggested that while investigations were ongoing, managers of the companies involved refused to honor invitations from the ARA.

Since then, more and more Nigerian businesses have been drawn into a web of money laundering allegations in the East African country, with Flutterwave being the most prominent case. Kiwipay, Korapay and Kando Technologies were among the startups involved in the controversy.

At the time these accounts were frozen, a few people insinuated that it was politically motivated as Kenya prepared for its presidential elections. However, it also revealed the complexity of facilitating cross-border payments in Africa.

The ARA had claimed that all the companies were involved in a money laundering scheme, but a source speaking to Techpoint Africa revealed that Flutterwave and Korapay had no transactions in Kenya.

With this new development, it could be that Flutterwave, Korapay, Kiwipay and all the other companies involved will see the charges against them dropped.

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