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Former Flutterwave Employee Loses $900,000 Appeal in Court

By   Milcah   Tanimu

Clara Wanjiku Odero, a former employee of Flutterwave, lost her appeal seeking $900,000 in damages against the fintech giant. This case dates back to her departure from the company in 2018. It revolves around claims of emotional distress and reputational damage.

According to the Kenyan Wall Street, Odero served as Flutterwave’s Head of Implementation for Rest of Africa. She claimed the firm did not remove her contact information from its M-Pesa Paybill account after her resignation. This oversight led to customers contacting her about Flutterwave-related issues, causing her significant distress.

The Court’s Ruling

Despite her claims, the Kenyan Court of Appeal upheld a lower court’s ruling. The court awarded her Ksh. 250,000 (about $2,500), far less than the $900,000 she sought. This amount included Ksh. 100,000 for emotional distress and Ksh. 150,000 for aggravated damages.

In the ruling on September 27, 2024, Justice Alexander Muasya stated, “The award in damages was capped at Ksh. 250,000 by the Magistrate. I do not find reason to disturb his finding considering that there was no proof of loss of reputation.” The court found that Odero failed to provide sufficient evidence to support her claims. She did not present medical or independent documentation of the emotional distress she reported. As a result, the court dismissed her appeal and ordered her to pay Flutterwave’s legal costs.

Flutterwave’s Response

Flutterwave, valued at over $3 billion, acknowledged the delay in updating Odero’s contact details. The firm sought to resolve the matter amicably. Flutterwave expressed regret over the situation but denied the bullying allegations made by Odero against CEO Olugbenga Agboola.

“As an organization that strives to create a secure environment for employees, we take allegations of bullying very seriously,” the company stated. “We categorically state that there is no place for bullying or harassment of any kind in our workplace.”

Key Insights

Despite the court case, Flutterwave announced plans to invest $50 million in Kenya, pending regulatory approval from the Central Bank of Kenya (CBK). This investment aims to hire new staff and improve Flutterwave’s infrastructure in the country. As of September 2023, CEO Olugbenga Agboola indicated that the company had over two dozen employees in Kenya. He expressed optimism about Flutterwave’s future in the region.

In June, CBK announced plans to grant payment licenses to fintech startups. This development paves the way for Flutterwave and other companies seeking licenses in the country.

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