FlexPay Directors Arrested in Kenya over KES 31.2M Claim

In Short

• Nairobi detectives arrested two directors linked to FlexPay over an alleged KES 31.2 million owed to an unnamed retailer.
• The pair are expected in court on a “stealing by agent” charge.
• Separately, FlexPay users have reported delayed withdrawals and slow customer support.

What Happened

Kenyan authorities have arrested two directors of the company behind FlexPay. The Directorate of Criminal Investigations, DCI, said Martin Kariuki Maina and Johnson Gituma Mwangi, directors of Flexitech Group Limited, were arrested in Roysambu.

The DCI alleges the two acted as agents for an unnamed retail chain. Investigators say they collected cash payments from shoppers who picked up goods at multiple branches, but the funds did not reach the retailer. The amount in question is KES 31.2 million, about $242,000. The DCI also alleges the money was used for personal purposes and that other suspects are still at large.

The two are expected to appear at Milimani Law Courts. The reported charge is “stealing by agent” under Section 283(b) of Kenya’s Penal Code. The DCI said investigations are ongoing, and the allegations have not been proven in court.

This case is separate from customer complaints that have circulated for months. Some FlexPay users have said withdrawals stall, refunds take weeks, and support stops responding. The DCI has not said the arrest is linked to those user reports.

FlexPay is described as a “save-now-buy-later” product, similar to a lay-by plan. A lay-by means you reserve an item, pay in instalments, then collect it after full payment. The company also offers savings features, including “Goals” for personal targets and “Chama” for group savings.

Why It Matters

For Kenya’s fintech sector, trust is the product. When a payments and savings facilitator faces criminal allegations, even a narrow retailer dispute can raise broader questions about governance, controls, and how customer funds are handled.

The distinction also matters for users and investors. The KES 31.2 million claim is about a retailer’s collections, not confirmed customer savings balances. Still, the timing keeps pressure on FlexPay to address withdrawal delays and communicate clearly on how its systems and safeguards work.

On Liners, FlexPay is listed as Flexpay.