Kuda and CEO face allegations of sex discrimination and unfair dismissal from former executive, per filing

An employment tribunal case has placed Kuda Technologies, one of Africa’s fastest-growing digital banks, under scrutiny over allegations of workplace discrimination, harassment, and wrongful dismissal. Rosemary Hewat, Kuda’s former Group Chief People Officer (CPO), filed a complaint accusing the company and its CEO, Babatunde Ogundeyi, of sex discrimination, victimization, and unfair dismissal.

According to the filing, Hewat, who held the senior role for nearly three years, claims the company forced her out in April 2024 after prolonged mistreatment. She filed the case with the U.K. Employment Tribunal, and TechCrunch has reviewed the legal documents. 

The complaint reveals internal conflicts at Kuda, which provides digital banking services to millions of customers in Nigeria and the U.K. It also raises broader concerns about workplace culture, leadership accountability, and gender equality in Africa’s tech industry.

When reached for comment, Hewat declined to discuss the case, citing ongoing legal proceedings. The full hearing is set for October. 

“It is accurate that Rosemary Hewat, a former employee of Kuda Technologies Limited UK, has made an employment tribunal claim against the company,” a Kuda spokesperson said in a response to TechCrunch. “As this is currently a legal matter, we’re unable to provide any additional information at this time. In line with our current policy and out of respect for privacy, we do not comment on matters of this nature involving current or former employees.

Hired in August 2021, Hewat managed global HR operations from Kuda’s U.K. office. According to the filing, she witnessed and experienced discriminatory behavior that contradicted Kuda’s Diversity, Equity, and Inclusion (DEI) policy. She alleges that CEO Ogundeyi and other senior leaders deliberately undermined her role, fostering a culture of misogyny and intimidation.

For instance, the filing describes a company retreat in Lagos, Nigeria, in December 2023. Hewat claims Ogundeyi publicly berated two female employees, per the filing. He allegedly called them “low class” and accused them of lacking “quality or luxury,” leaving them in tears. Hewat, per the filing, insists this incident was part of a broader pattern that made Kuda’s workplace “intimidating, hostile, degrading, humiliating, and offensive” for her and other women.

The complaint also describes how Ogundeyi allegedly saw himself within Kuda. Hewat claims he repeatedly told her that employees viewed him as “God” and feared approaching him.

Hewat says senior management excluded her from critical strategy discussions, according to the filing. In January 2023, then-COO Pavel Khristolubov allegedly left her out of a senior management meeting, even though her team handled resourcing decisions on the agenda. When she questioned her exclusion, Ogundeyi reportedly told her the meeting was about product strategy, making her presence unnecessary. Shortly after, her team was pressured to implement resourcing decisions from that very meeting.

After, Khristolubov allegedly bypassed Hewat’s authority by working directly with her team members, the filing said. When she raised concerns with Ogundeyi and CTO Mutairu Mustapha, Ogundeyi reportedly dismissed them. In a performance review, Ogundeyi allegedly told her to “spend the next six months getting Pavel to like you.” Hewat argues in the filing that this further exacerbated the toxic work environment and obstructed her ability to perform her role.

By October 2023, Hewat formally proposed reviewing internal systems to address her issues with Khristolubov. Instead of engaging with her concerns, Ogundeyi allegedly threatened her with dismissal.

Equity compensation dispute

At the center of Hewat’s complaint is an unresolved dispute over her employee stock options (ESOP). When she joined Kuda, she claims that the company offered her several hundred thousand dollars worth of ESOP shares at its Series A valuation. However, despite multiple requests, she never received formal documentation.

Kuda finally issued the ESOP grant in April 2022, but it was based on its Series B valuation, increasing the stock price and reducing her equity value, per the filing. She claims to have later discovered that then-CFO Steven Bastian had successfully negotiated to revert his shares to the Series A price. When Hewat raised concerns, Ogundeyi allegedly dismissed her request, saying Bastian’s role was “more important” than hers.

In December 2023, Hewat formally documented her concerns about share allocations (and pay disparity), per the filing. She warned Kuda that failing to address the issue could constitute sex discrimination under U.K. employment law. In response, Ogundeyi rejected her claims, arguing 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 there is no evidence,” said Ogundeyi to her, per the filing. “The terms of your employment and option grant are as set out in writing to you; even if someone did suggest to you that you might receive something different (which is not accepted), that does not make a contractual entitlement.”

Despite Ogundeyi’s assurances that Kuda would investigate her complaint, no formal inquiry took place, per the filing. Hewat claims Ogundeyi rejected mediation and personally handled the internal investigation into his own actions, ultimately ruling in his favor. She argues this violated Kuda’s grievance policy and the ACAS Code of Practice on workplace dispute resolution.

Hewat claims her attempt to resolve her concerns in January 2024 allegedly worsened her relationship with her former boss. She claims he pressured her to withdraw her discrimination complaint, which she refused to do.

Sudden dismissal and retaliation

In February 2024, Kuda abruptly fired the London-based Hewat while she was traveling to Lagos for an Executive Committee (ExCo) retreat. She had just attended her sister’s memorial service and was on a layover when Ogundeyi insisted on a video call. Despite informing him of her circumstances, Hewat claims he fired her during that conversation.

Kuda allegedly barred Hewat from the retreat she had flown in for, which she saw as a deliberate attempt to humiliate her. When she later met Ogundeyi in person, he cited Nigeria’s economic instability and cost-cutting measures as reasons for her dismissal.

“I am making some severe changes, change definitely needs to happen…lots of personality clashes and you are definitely in the thick of that,” Ogundeyi allegedly told her. He also said, “In the UK, you are probably underpaid, but for Kuda, you are expensive…what does Rosie have to do to justify her salary? It’s mainly an FX thing.”

According to the filing, Ogundeyi claimed that her firing wasn’t linked to Hewat’s discrimination complaint, share allocations, or Khristolubov. However, Hewat claims he still brought up her relationship with Khristolubov. (Khristolubov ultimately left Kuda two months after Hewat, in June 2024.)

Hewat claims Kuda offered her the same exit terms as Khristolubov, although he was a contractor while she was a full-time employee. She argues that Kuda fired her in retaliation for her workplace discrimination complaints, pointing out that she was the only U.K.-based executive dismissed. 

In response to a redundancy claim Kuda later filed against her, she countered that the company was not struggling financially, citing its ability to pay Ogundeyi’s children’s nanny £55,000 per year, according to the filing.

News of Hewat’s dismissal spread quickly within Kuda, despite Ogundeyi’s alleged assurances of confidentiality. When she emailed him about the breach, she claims he ignored her.

Adding to the confusion, CTO Mustapha allegedly admitted that her firing was a mistake, forced by board members Ricardo Schaefer and Andrew John McCormack. He invited her to return, but discussions fell apart after Kuda refused her settlement requests and delayed responding to her “Data Subject Access” request.

Instead, the company sent her a formal redundancy consultation letter, weeks after firing her, the filing said. Over the next few months, Hewat claims Kuda retaliated further by cutting off her salary, canceling her health insurance, and withholding her full holiday pay. Hewat, unable to tolerate the toxic environment, resigned in April 2024, citing constructive dismissal.

The ex-CPO’s legal filing details how Kuda’s actions left her in financial hardship, as the company refused to pay her unpaid wages. Hewat now seeks compensation for unfair dismissal, sex discrimination, emotional distress, and Kuda’s alleged failure to follow proper workplace grievance procedures. She also demands reimbursement for unpaid holiday pay and medical expenses.

This case puts Kuda, which has raised significant venture funding, including a $55 million Series B round in 2021 from investors like Valar Ventures and Target Global, under significant scrutiny at a time when African companies are facing increasing investor and regulatory pressure to improve governance and corporate accountability, sparked first by a series of workplace conduct allegations at Flutterwave, Africa’s most valuable startup, in 2022. 

With investors and the broader tech ecosystem watching closely, it could also have significant ramifications for the company’s reputation and its ability to attract top talent in the future. As for Ogundeyi and the leadership team, they may face increased scrutiny over their treatment of female employees. 

It’s an event that serves as a cautionary tale for other tech companies where rapid growth can sometimes overshadow cracks in internal operations. How Kuda handles this legal challenge could shape the company’s future trajectory, both in terms of employee relations and its standing in Nigeria’s and the wider fintech ecosystems.