In a legal battle that has captured the attention of Africa’s tech and fintech industries, Clara Wanjiku Odero, a prominent Kenyan tech founder and CEO of Softbank-backed Credrails, lost her appeal against Flutterwave, one of Africa’s largest Fintech Giants. The case, centered on claims of emotional distress and reputational damage, culminated in a much smaller award than the $900,000 Odero originally sought.
Odero, a former Head of Implementation for Rest of Africa at Flutterwave, brought the lawsuit after alleging that the company failed to remove her contact details from its M-Pesa Paybill account when she resigned in 2018. According to Odero, this oversight led to years of unwanted communications from Flutterwave’s customers, causing her emotional distress and damaging her professional reputation. The court, however, ruled that while there was merit to her claims of emotional distress, there was insufficient evidence to justify the extensive damages she sought.
The Lawsuit
As originally reported by The Kenyan Wall Street, The legal saga began when Odero filed a suit against Flutterwave, seeking $900,000 in damages for what she described as negligence on the part of the fintech giant. Despite leaving the company in 2018, Odero’s contact details were still linked to Flutterwave’s M-Pesa account, resulting in customers continuing to reach out to her for company-related issues. She claimed that this led to public embarrassment, stress, and reputational harm.
However, the Court of Appeal did not find sufficient grounds to award the substantial damages Odero had hoped for. On September 27th, 2024, Justice Alexander Muasya upheld the lower court’s ruling, awarding her Ksh. 100,000 for emotional distress and Ksh. 150,000 in aggravated damages – a total of Ksh. 250,000 (approximately $2,500).
“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 sum was reasonable,” Justice Muasya stated in his ruling, underscoring the absence of evidence connecting Flutterwave’s negligence to any significant reputational damage.
The Claims and the Court’s Ruling
Odero’s argument focused on Flutterwave’s failure to remove her contact details after she resigned, which she argued led to personal embarrassment and mental anguish. She contended that as a former senior employee, her continued association with the company in this way had damaged her reputation in the tech community. Despite these claims, the court noted that Odero was unable to produce any medical or independent evidence to substantiate the full extent of her emotional distress or reputational harm.
Flutterwave acknowledged the delay in updating Odero’s contact information but had offered to resolve the matter amicably prior to the lawsuit. In its defense, the company denied allegations of bullying and misconduct by its CEO, Olugbenga Agboola, which Odero had raised during the case.
“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,” Flutterwave said in a statement at the time.
The Appeal and the Outcome
Odero appealed the initial ruling, hoping for a larger settlement. However, the appellate court found no reason to overturn the lower court’s decision. The judges determined that the Ksh. 250,000 award for emotional distress was adequate, particularly in light of the lack of concrete evidence showing reputational damage.
The court dismissed Odero’s appeal, ordering her to bear the costs of the appeal and reaffirming the lower court’s stance on the case. The ruling marked the end of a long legal journey for Odero, who has since moved on to helm Credrails, a rapidly growing fintech firm backed by Softbank.
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