Kenyan police arrest FlexPay founders over theft and fraud allegations
The founders of Flexitech Group Limited, the company behind the Kenyan save-now-buy-later fintech FlexPay, have been arrested over the alleged theft of KES 31.2 million ($242,000) belonging to an unnamed major retail chain, adding to scrutiny of the startup after months of customer complaints about delayed withdrawals.
Kenyan police have arrested Martin Kariuki Maina and Johnson Gituma Mwangi, founders of Flexitech Group Limited and the fintech FlexPay, over alleged theft and fraud involving KES 31.2 million ($242,000) belonging to a major retail chain. The founders are accused of acting as agents of the retailer and diverting funds for their own use.
The Directorate of Criminal Investigations (DCI) stated that the money was entrusted to the suspects for onward remittance to the retailer, but it was instead diverted. The two are expected to be arraigned at Milimani Law Courts and charged with stealing by agent under Section 283(b) of Kenya's Penal Code. Investigations are ongoing, with detectives pursuing other individuals believed to be involved.
The arrests follow months of complaints from FlexPay customers about delayed withdrawals and difficulties accessing their funds.
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