The high court in Kenya has granted the Asset Recovery Agency (ARA) permission to withdraw its second case against fintech company Flutterwave, bringing an end to legal troubles for the payments company in the country. This clearance is a significant relief for Flutterwave as it seeks a payments service provider and remittances license from the Central Bank of Kenya and expands its operations in the region.

The ARA decided to withdraw the case after further investigations revealed that Flutterwave was not involved in any criminal activities, including money laundering and fraud. The judge's ruling allowed the withdrawal and marked the case as closed.

This resolution follows earlier developments when the judge initially declined the ARA's request to withdraw the case, seeking explanations for the sudden change of stance by the agency. The court criticized the ARA for commencing legal proceedings without completing its investigations and demanded that any civil or tortious liabilities arising from this case would be the responsibility of the agency's director and investigator.

Kenya is now set to release the $3 million that had been frozen in Flutterwave's bank and mobile money accounts. The initial case, which froze $52.5 million, was also formally withdrawn earlier this year, bringing an end to Flutterwave's legal challenges in Kenya.

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