Pesapal Executive Questioned in Kenya over Sh24.5m Fraud

In Short

• A Kenyan police unit focused on financial crime questioned a Pesapal executive over alleged wire fraud.
• The case follows a complaint by two Chinese nationals who reported losing Sh24,510,793.
• Investigators were told the funds may have been siphoned through alleged system manipulation.

What Happened

Pesapal, a Nairobi-based digital payments processor, is facing renewed scrutiny after the Banking Fraud Investigations Unit questioned one of its executives.

The complaint was filed by two Chinese nationals who said they lost Sh24,510,793. That is about Sh24.5 million. The matter is being handled by the Banking Fraud Investigations Unit, a specialised unit within Kenya’s Directorate of Criminal Investigations that probes fraud and financial crime complaints.

According to the report, Redspot Lotus Company Limited told investigators the siphoning was done through a “well-calculated system manipulation”. In simple terms, that suggests someone may have found a way to change or exploit how payment and settlement processes run inside a platform.

Pesapal is widely used by merchants for card and digital payments. Allegations tied to payment routing, access controls, and internal oversight can quickly become public trust issues for payment service providers.

Why It Matters

For Pesapal, the story is about operational risk. In fintech, operational risk means failures in internal processes, people, or systems that can lead to losses or disputes.

Even before a court outcome, public investigations can affect business relationships. Enterprise merchants, banks, and international partners often tighten controls when a payment processor is linked to a fraud probe.

The case also highlights a wider trend in Kenya’s fintech market. As digital payments scale, fraud complaints are increasingly tested through law enforcement processes, not just private dispute resolution.

For founders and operators, the takeaway is clear. Strong internal controls, audit trails (records of who did what and when), and rapid incident response can be as important as growth when operating a payments business.