A recent employment tribunal case has drawn attention to Kuda Technologies, a rapidly expanding digital bank in Africa, amidst allegations of workplace discrimination, harassment, and wrongful termination. Rosemary Hewat, the company’s former Group Chief People Officer (CPO), has lodged a complaint against Kuda and its CEO, Babatunde Ogundeyi, claiming sex discrimination, victimization, and unfair dismissal.
In her complaint, Hewat, who served in her senior position for nearly three years, asserts that the company compelled her departure in April 2024 after enduring extensive mistreatment. The case has been filed with the U.K. Employment Tribunal, and TechCrunch has accessed the related legal documentation.
The lawsuit highlights significant internal strife at Kuda, a company that delivers digital banking services to millions across Nigeria and the U.K. It raises wider issues regarding workplace culture, accountability in leadership, and gender parity within Africa’s technology sector.
When approached for comment, Hewat chose not to disclose details of the case, citing the ongoing legal process. The complete hearing is anticipated in October.
“It is true that Rosemary Hewat, a former employee of Kuda Technologies Limited UK, has filed an employment tribunal claim against the organization,” stated a spokesperson for Kuda in a response to TechCrunch. “Due to the legal nature of this matter, we cannot provide further details at this time. According to our current policies and out of respect for privacy, we do not comment on such issues involving current or past employees.
Hewat, who was brought on board in August 2021, oversaw global HR operations from Kuda’s U.K. office. Her complaint claims she encountered and experienced discriminatory practices that were at odds with Kuda’s Diversity, Equity, and Inclusion (DEI) policy. She alleges that CEO Ogundeyi and other senior figures actively undermined her position, creating an environment characterized by misogyny and intimidation.
For example, the complaint recounts a company retreat held in Lagos, Nigeria, in December 2023, during which Hewat alleges that Ogundeyi publicly humiliated two female employees. He purportedly referred to them as “low class” and accused them of lacking “quality or luxury,” which reportedly brought them to tears. Hewat insists this incident is part of a broader trend that contributed to a work atmosphere at Kuda that was “intimidating, hostile, degrading, humiliating, and offensive” for herself and other women.
Additionally, the complaint describes how Ogundeyi purportedly viewed himself within the company. Hewat claims he frequently indicated that employees considered him to be “God” and were reluctant to approach him.
According to the filing, Hewat was routinely excluded from vital strategic discussions by senior management. In January 2023, then-COO Pavel Khristolubov reportedly omitted her from a senior management meeting despite her team being responsible for resourcing decisions on the agenda. When she inquired about her exclusion, Ogundeyi allegedly claimed the meeting focused on product strategy, indicating her absence was not an issue. Shortly after, her team was compelled to act on resourcing decisions that stemmed from that meeting.
Subsequently, the complaint states that Khristolubov bypassed Hewat’s authority by coordinating directly with her team members. When she raised this issue with Ogundeyi and CTO Mutairu Mustapha, Ogundeyi allegedly dismissed her concerns. During a performance review, he purportedly suggested she “spend the next six months getting Pavel to like you.” Hewat argues that this suggestion exacerbated the toxic environment and hindered her ability to fulfill her role effectively.
By October 2023, Hewat officially suggested a review of internal processes to address her concerns regarding Khristolubov. Rather than addressing her issues, Ogundeyi allegedly threatened her with termination.
Equity Compensation Dispute
A significant component of Hewat’s complaint is an ongoing dispute concerning her employee stock options (ESOP). Upon joining Kuda, she claims she was offered ESOP shares worth several hundred thousand dollars at its Series A valuation. However, despite numerous requests, she did not receive the necessary formal documentation.
Kuda finally granted the ESOP in April 2022, but it was based on the higher Series B valuation, resulting in a rise in stock price and consequently a diminishment of her equity value, as detailed in her filing. She later learned that then-CFO Steven Bastian had successfully renegotiated his shares to reflect the Series A price. When Hewat raised her concerns, Ogundeyi allegedly dismissed them, stating that Bastian’s position was “more critical” than hers.
In December 2023, Hewat documented her concerns regarding share allocations and pay inequities. She cautioned Kuda that inadequately addressing her issues could result in findings of sex discrimination under U.K. law. Responding to her inquiries, Ogundeyi refuted her claims, maintaining that she had no contractual entitlement to Series A shares.
“As a company, we note that you have not provided any correspondence (emails, letters, etc.) to substantiate your claims and we assume that is because no evidence exists,” Ogundeyi reportedly stated. “The terms of your employment and option grant were clearly laid out in writing; even if someone suggested otherwise (which we dispute), that does not establish a contractual entitlement.”
Despite Ogundeyi’s promise that Kuda would look into her complaint, no formal investigation occurred, according to the filing. Hewat claims Ogundeyi turned down mediation and personally conducted the investigation concerning his actions, ultimately ruling in his favor. She maintains this violated Kuda’s grievance policy and the ACAS Code of Practice concerning workplace dispute resolution.
Hewat states that her attempt to address her issues in January 2024 allegedly strained her relationship with her former superior. He pressured her to retract her discrimination complaint, which she resolutely refused to do.
Sudden Dismissal and Retaliation
In February 2024, Kuda terminated Hewat abruptly while she was en route to Lagos for an Executive Committee (ExCo) retreat. She had just attended her sister’s memorial and was on a layover when Ogundeyi demanded a video call. Despite informing him of her situation, she claims he proceeded to fire her during that call.
Kuda allegedly excluded Hewat from the retreat she had traveled for, a move she perceived as a deliberate attempt to embarrass her. Later, when she met Ogundeyi face-to-face, he attributed her dismissal to Nigeria’s economic instability and cost-reduction measures.
“I am implementing some significant changes, there are clear areas that need addressing… numerous personality conflicts and you are certainly a part of that,” Ogundeyi allegedly informed her. He also remarked, “In the UK, you are likely underpaid, but for Kuda, your salary is too high… what does Rosie have to do to justify her salary? It’s fundamentally an FX issue.”
The filing indicates that Ogundeyi claimed her termination was unrelated to her discrimination complaint, stock options, or Khristolubov. Nevertheless, Hewat asserts that he continued to reference her interactions with Khristolubov. (Khristolubov eventually departed Kuda two months after Hewat, in June 2024.)
Hewat asserts that Kuda offered her the same exit terms as Khristolubov, despite the fact that he was a contractor while she was a full-time employee. She contends that Kuda terminated her in retaliation for her claims of workplace discrimination, highlighting that she was the sole U.K.-based executive to be dismissed.
In response to a redundancy claim Kuda lodged against her, she countered that the company was not in financial distress, citing its ability to afford a £55,000 annual salary for Ogundeyi’s children’s nanny, according to the filing.
News of Hewat’s departure circulated swiftly within Kuda, despite Ogundeyi’s purported guarantees of confidentiality. When she contacted him regarding the breach, she claims he failed to respond.
Compounding the situation, CTO Mustapha allegedly acknowledged that her firing constituted a mistake, instigated by board members Ricardo Schaefer and Andrew John McCormack. He extended an invitation for her to return, but negotiations soured after Kuda resisted her settlement demands and delayed their response to her “Data Subject Access” request.
Instead, the company issued her a formal redundancy consultation letter weeks after her termination, according to the filing. In the following months, Hewat contends that Kuda intensified the retaliation by ceasing her salary, terminating her health insurance, and withholding her accrued holiday pay. Unable to endure the hostile work environment, she resigned in April 2024, citing constructive dismissal.
Hewat’s legal filing elaborates on how Kuda’s actions have placed her in financial distress, as the company has withheld her unpaid earnings. She is now pursuing compensation for unfair dismissal, sex discrimination, emotional distress, and Kuda’s alleged disregard for established grievance procedures. Additionally, she seeks reimbursement for overdue holiday pay and medical expenses.
This case casts a spotlight on Kuda, which has successfully attracted considerable venture investment, including a $55 million Series B round in 2021 from investors such as Valar Ventures and Target Global, at a time when African firms are facing heightened investor and regulatory scrutiny to enhance governance and corporate responsibility. This concern was initially triggered by multiple workplace conduct allegations at Flutterwave, Africa’s premier startup, in 2022.
With investors and the wider tech community closely observing, the outcomes could significantly impact the company’s reputation and its potential to recruit top-tier talent in the foreseeable future. For Ogundeyi and the leadership team, they may face increased examination regarding their treatment of female employees.
This situation serves as a cautionary example for other technology firms, where rapid expansion can often obscure underlying flaws in internal operations. The manner in which Kuda navigates this legal challenge could influence the company’s future trajectory, not only in terms of employee engagement but also in its standing within Nigeria’s and the broader fintech landscape.
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