Nigeria’s Korapay Technologies Limited and Kandon Technologies Limited have been accused of fraud in Kenya, with suspicion of siphoning over $50 million (KSh6 billion) into the country.
The Asset Recovery Agency (ARA) filed two lawsuits against the companies, accusing them of availing themselves as a conduit for international money laundering.
Because of this, the Kenyan High Court has frozen their accounts with KSh45 million ($381,000) worth of funds belonging to the two Nigerian companies. Over $249,990 (KSh 29.5 million) was held in Korapay’s frozen Equity Bank account while Kandon Technologies had $126,800 (KSh 15 million) in two frozen UBA accounts.
Korapay has denied all allegations of money laundering saying,
“We want to make it very clear that the allegations from Kenya and the report from Standard KE are baseless and bordering on malicious.”
The company added that it intends to release an official statement on the matter soon.
Kandon also denied all allegations of financial impropriety and expressed that it is taking necessary legal steps.
“Every transaction we did in Kenya was fully compliant, we’re working directly with the banks who have carried out KYC on us and are aware of the nature of our transactions and our beneficiaries. This is an issue that has been ongoing for a while, we have been aware of this issue for months and we’re definitely taking legal actions. I believe we are going to be cleared because we have done nothing wrong, it feels like witch hunting .”
The court’s decision to impose a six-month account freeze on Korapay and Kandon’s accounts is likely to help the ARA finish its investigations into the alleged money laundering. According to the evidence presented to the court by the ARA, Korapay and Kandon were part of a global network of fraudsters who channeled illegal funds through Kenyan banks.
According to the ARA, Korapay and Kandon are linked to 7 other Nigerian firms including Flutterwave Ltd, Elivalat Fintech Ltd, Hupesi Solutions, Adguru Technology Limited, Boxtrip Travels and Tours, Bagtrip Travels Ltd, Cruz Ride Auto Ltd and a Kenyan businessman, Simon Karanja whose accounts were frozen last week over money laundering allegations.