Flutterwave Welcomes Court Ruling In Battle With SoftBank-Backed Founder

Pan-African fintech giant Flutterwave has expressed satisfaction with the recent decision by the Kenyan Court of Appeal, which upheld a lower court ruling in a long-standing legal dispute with former employee, Clara Wanjiku Odero, now Founder/CEO of Credrails, an open finance platform backed by prominent global investor SoftBank.

The court dismissed Odero’s appeal, awarding her KES 250 K (approximately USD 2.5 K) in total damages, a sum far smaller than what she had reportedly sought for emotional distress and reputational damage.

Odero’s claims stemmed from Flutterwave’s failure to remove her contact information from its M-Pesa Paybill account after her departure from the company in 2018, leading to customer inquiries directed at her long after she left her role as Head of Implementation for Rest of Africa.

Odero argued that this oversight caused her public embarrassment, emotional distress, and reputational harm after she was erroneously roped into a scandal involving a shady customer. However, the appellate court agreed with the lower court’s decision, noting that Odero had not provided sufficient evidence to support her claims of reputational damage.

Justice Alexander Muasya, in delivering the ruling, emphasized the court’s position, stating: “The award in damages was capped at KES 250 K by the Magistrate. I do not find reason to disturb his finding considering that there was no proof of loss of reputation. The sum was reasonable.”

In response to the ruling, Flutterwave told WT in a statement that it welcomed the court’s decision and reiterated its confidence in the legal process. “We welcome the Court’s decision to dismiss the claimant’s appeal and to award Flutterwave the costs of the appeal. This outcome reinforces our confidence in the justice system and the integrity of the legal process,” the company said. Wanjiku declined to comment.

Flutterwave also reiterated its commitment to fostering a positive workplace culture, stating: “As we move forward, our focus remains on growing the company while ensuring that every employee feels safe, valued, and respected. We’re committed to fostering a culture of safety, inclusivity, and collaboration, and we encourage open conversations at all levels of our organization.”

The legal battle between Odero and Flutterwave first gained public attention after Odero shared her experiences in a 2022 Medium post, accusing Flutterwave’s CEO, Olugbenga Agboola, of bullying and harassment. She alleged that her treatment at the company left her feeling belittled and tarnished, claims that Flutterwave has consistently denied.

The company stated: “As an organisation that continuously strives to create an environment where employees feel secure and safe, we take the recent allegations of bullying from a former employee very seriously. We categorically state that there is no place for bullying or harassment of any kind in our workplace.”

Despite Odero’s efforts to claim higher compensation, the court found no direct evidence linking Flutterwave’s negligence to any reputational harm. The court awarded her KES 100 K for emotional distress and KES 150 K as aggravated damages—well below the amount initially sought. Moreover, the appellate court dismissed Odero’s appeal and ordered that Flutterwave be awarded the costs associated with the appeal.

This ruling marks the conclusion of a legal saga that began after Odero’s departure from Flutterwave and highlights the importance of clear separation protocols for departing employees. The court’s decision has also reinforced Flutterwave’s position that its handling of the situation, though regrettable, did not merit the level of compensation Odero had demanded.

Flutterwave, now valued at over USD 3 B, acknowledged its delay in removing Odero’s contact information but had earlier expressed regret and offered to resolve the issue amicably. Nevertheless, the company stood firm in denying the broader allegations of harassment.

This case exposes the complexities that can arise when employee exit procedures are not handled with precision. It also emphasises the need for clear communication channels and robust HR practices to avoid potential legal disputes. Flutterwave’s focus, as stated in its response, remains on growth and creating a positive workplace environment.

For Flutterwave, the ruling represents closure in a dispute that has spanned several years, allowing the company to continue expanding its operations and cementing its status as one of Africa’s leading fintech firms.