Korapay Denies Allegations Of Money Laundering In Kenya

Contrary to Asset Recovery Agency, ARA, laundering allegations in court, Korapay Technologies has come out to deny the said allegation of money laundering activities in Kenya.

On the 14th of July 2022, a Kenyan High Court, through Lady Justice Esther Maina, passed the order to freeze Korapay Technologies and Kandon Technologies Limited Kenyan bank accounts.

The suit was first filed against Korapay Technologies limited, where the court froze about twenty-nine million, five hundred thousand Kenyan Shillings (Ksh29.5 million), which is an equivalent of two hundred and forty-nine thousand United States Dollars ($249), in the company’s accounts.

The second suit was against Kandon Technologies Limited, where the court also froze about fifteen million Kenyan Shillings in both of its UBA accounts.

A Kenyan High Court on July 14 froze the accounts of Kora and another Nigerian fintech company, Kandon Technologies Limited, for allegedly siphoning Sh6 billion (~$51 million) into the country. Lady Justice Esther Maina issued the orders in two separate suits filed by the Asset Recovery Agency (ARA).

As a result of this order, the frozen account will be restricted to make withdrawals and processing deposit payments for the next six months.

In a statement released by Korapay, written by Head of Marketing and Comms, Gbenga Onalaja, stated in quote, “We are confident that the Kenyan courts will come to see that the accusations against us are not only wholly baseless but borderline malicious,”

The statement explained further,  “As part of the capital requirements from the Central Bank of Kenya (CBK) for obtaining a payment service provider and remittance operator license (PDF Pg. 720), Kora deposited the sum of $250,000 in its freshly opened bank account. In line with CBK requirements, this amount was left untouched pending the granting of our license.

The ARA claimed that Korapay Technologies and Kandon Technologies cases are linked to other firms (Nigerian-owned) and a businessman (a Kenyan)whose accounts were also frozen last week over international laundering allegations.

Meanwhile, Kandon Technologies is yet to make any statement concerning the case.