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    HomeEcosystem NewsKuda Brandishes Workforce as Employee Abuse Claims Shake Nigerian Fintech

    Kuda Brandishes Workforce as Employee Abuse Claims Shake Nigerian Fintech

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    Kuda Technologies, one of Nigeria’s leading digital banking platforms, has come under scrutiny following allegations of workplace discrimination and unfair treatment of employees. The controversy was ignited by a legal case filed in a UK Employment Tribunal by Rosemary Hewat, the company’s former Group Chief People Officer (CPO), who alleges sex discrimination, victimization, and unfair dismissal.

    Hewat, who joined Kuda in August 2021 to oversee global human resources operations from the company’s UK office, claims in her court filing that she faced systemic discrimination and intimidation at Kuda. She has specifically accused Kuda’s CEO, Babatunde Ogundeyi, of fostering a workplace culture that contradicted the company’s stated Diversity, Equity, and Inclusion (DEI) policies.

    According to the court documents, Hewat alleges that during a company retreat in Lagos in December 2023, Ogundeyi publicly humiliated two female employees by referring to them as “low class” and lacking “quality or luxury,” leaving them visibly distressed. She further claims that her termination in April 2024 resulted in financial hardship, for which she is seeking compensation on grounds of unfair dismissal, sex discrimination, and emotional distress.

    These allegations have sparked broader discussions on workplace leadership and accountability in the Nigerian fintech industry.

    Despite the ongoing legal proceedings, Kuda appears to be doubling down on its corporate messaging and public engagement efforts. While the lawsuit looms, CEO Babatunde Ogundeyi has shifted focus publicly towards the company’s latest product updates, particularly the release of its annual financial report, My Year On Kuda.

    In a recent post on his social media platform, Ogundeyi avoided addressing the allegations directly and instead promoted Kuda’s latest customer engagement initiative. He detailed how the My Year On Kuda feature was built, highlighting the company’s commitment to transparency in personal finance management. The post, which focused on Kuda’s data-driven approach to improving user experience, made no reference to the allegations, prompting speculation about the company’s internal stance on the matter.

    Notably, Kuda’s My Year On Kuda campaign placed significant emphasis on the employees behind the product’s development, a move that some observers interpret as an attempt to deflect from the controversy. The timing of the product’s release, coinciding with the negative publicity surrounding the court case, has raised questions about whether Kuda is using its workforce as a public relations buffer to demonstrate a strong, engaged team and downplay concerns about employee maltreatment. While the initiative highlights the efforts of staff involved in developing the product, critics argue that it serves as a strategic distraction from the ongoing legal dispute.

    Kuda’s handling of these allegations will likely set a precedent for workplace policies within Nigeria’s fintech ecosystem, an industry that has grown exponentially over the past decade. The case also underscores the challenges of maintaining workplace ethics and strong corporate governance within high-growth startups.

    The fintech sector in Nigeria has seen a wave of international investments and regulatory attention, making corporate governance an area of increasing scrutiny. Kuda, which operates under a microfinance banking license issued by the Central Bank of Nigeria, has positioned itself as a progressive digital bank, but these allegations raise concerns about whether its internal culture aligns with its external branding.

    The tribunal’s decision, expected later this year, could have significant implications not only for Kuda but also for broader labor practices within Nigeria’s startup ecosystem. As the case unfolds, industry stakeholders, employees, and investors will be closely watching how Kuda navigates this crisis and whether its leadership can regain trust amidst the controversy.

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