Kuda Technologies, one of Africa’s fastest-growing digital banks, is facing scrutiny following allegations of workplace discrimination, harassment, and wrongful dismissal. The Kuda discrimination case was filed with the UK Employment Tribunal by former Group Chief People Officer (CPO) Rosemary Hewat.
Hewat, who served as CPO for nearly three years, accuses Kuda and its CEO, Babatunde Ogundeyi, of sex discrimination, victimization, and unfair dismissal. She claims she was forced out of the company in April 2024 after enduring prolonged mistreatment.
Kuda confirmed the case in an email response but declined further comment due to its legal nature.
Allegations of Workplace Discrimination
Hewat, hired in August 2021 to manage Kuda’s global HR operations from the U.K., alleges that she experienced and witnessed discriminatory behavior that contradicted the company’s Diversity, Equity, and Inclusion (DEI) policy.
According to filings analyzed by TechCrunch, CEO Ogundeyi and other senior executives allegedly undermined her role and fostered a culture of misogyny and intimidation.
One major incident cited occurred at a company retreat in Lagos in December 2023. Hewat claims Ogundeyi publicly berated two female employees, calling them “low class” and accusing them of lacking “quality or luxury.” She described the workplace as “intimidating, hostile, degrading, humiliating, and offensive” for her and other women.
The filing also alleges that Ogundeyi repeatedly claimed employees viewed him as “God” and were afraid to approach him. Additionally, Hewat was allegedly excluded from key strategy discussions, with then-COO Pavel Khristolubov bypassing her authority and working directly with her subordinates.
Dispute Over Equity Compensation
A significant part of Hewat’s complaint involves her employee stock options (ESOP). She claims she was promised several hundred thousand dollars worth of ESOP shares based on the company’s Series A valuation. However, despite repeated requests, she never received formal documentation.
When Kuda issued the ESOP grant in April 2022, it was based on the Series B valuation, which increased the stock price and reduced her equity value. Hewat alleges that then-CFO Steven Bastian successfully negotiated to revert his shares to the Series A price, but her request was denied. Ogundeyi reportedly stated that Bastian’s role was “more important” than hers.
In February 2024, Hewat was abruptly dismissed while traveling to Lagos for an Executive Committee (ExCo) retreat. Despite informing Ogundeyi of her situation, she was reportedly fired over a video call and barred from attending the retreat. She believes this was a deliberate attempt to humiliate her.
Ogundeyi cited Nigeria’s economic instability and cost-cutting measures as reasons for her dismissal. However, Hewat argues that her firing was retaliation for her discrimination complaints. She also claims that Kuda offered her the same exit terms as Khristolubov, even though she was a full-time employee while he was a contractor.
What This Means for Kuda and the African Tech Industry
The Kuda discrimination case places the company under intense scrutiny. Kuda has raised significant venture funding, including a $55 million Series B round in 2021. The case also highlights growing concerns about workplace culture and corporate governance in Africa’s tech ecosystem.
This lawsuit follows similar controversies in African startups. In 2022, Flutterwave faced allegations of workplace misconduct and financial mismanagement. Investors and regulators are now pushing for better governance and accountability.
The Kuda discrimination case raises serious questions about the company’s leadership and workplace culture. With the legal battle unfolding, the case could have lasting implications for corporate governance in Africa’s fast-growing fintech sector. As the tribunal proceedings continue, industry observers will closely monitor Kuda’s response and its impact on the broader tech ecosystem.
