Kuda CEO Faces Serious Allegations of Sex Discrimination and Unfair Dismissal from Ex-Executive

Kuda Technologies, recognized as one of Africa’s fastest-growing digital banks, is currently facing serious allegations of workplace discrimination, harassment, and wrongful dismissal. Rosemary Hewat, the former Group Chief People Officer (CPO) at Kuda, has filed a complaint against the company and its CEO, Babatunde Ogundeyi, citing sex discrimination, victimization, and unfair dismissal.

Details of the Employment Tribunal Case

Hewat, who served in her senior role for nearly three years, claims she was forced out of her position in April 2024 due to prolonged mistreatment. She has taken her case to the U.K. Employment Tribunal, and TechCrunch has reviewed the legal documents related to her complaint.

Concerns About Workplace Culture

The allegations have raised significant concerns about Kuda’s internal culture, leadership accountability, and gender equality within Africa’s tech industry. Hewat’s claims suggest a troubling environment at Kuda, which provides digital banking services to millions of customers across Nigeria and the U.K.

Allegations of Misogyny and Intimidation

In her filing, Hewat describes a culture of misogyny and intimidation at Kuda, where she allegedly experienced discriminatory behavior that contradicted the company’s Diversity, Equity, and Inclusion (DEI) policy. For example:

• During a company retreat in Lagos in December 2023, CEO Ogundeyi reportedly berated two female employees, calling them “low class.”
• Hewat claims Ogundeyi often portrayed himself as a figure of authority, stating that employees viewed him as “God.”

Exclusion from Key Discussions

Hewat’s complaint details instances where she was excluded from critical strategy discussions, hindering her ability to perform her role effectively. For instance:

• In January 2023, she was left out of a senior management meeting by then-COO Pavel Khristolubov, despite her team’s involvement.
• Her concerns were reportedly dismissed by Ogundeyi, who suggested her presence was unnecessary.

Dispute Over Employee Stock Options

A significant aspect of Hewat’s claim involves a dispute regarding her employee stock options (ESOP). She alleges that:

• Upon joining Kuda, she was promised stock options valued at several hundred thousand dollars based on the Series A valuation.
• However, the ESOP grant issued in April 2022 was based on a higher Series B valuation, effectively reducing her equity value.

Despite raising concerns, Hewat claims her requests were dismissed by Ogundeyi, who indicated that the then-CFO’s role was “more important” than hers.

Retaliation and Dismissal

In February 2024, Hewat was unexpectedly dismissed while traveling for an Executive Committee retreat. She argues that her firing was a direct retaliation for her complaints regarding workplace discrimination and her advocacy for fair treatment.

According to her filing, Kuda’s leadership offered her the same exit terms as a contractor who had been dismissed, despite her full-time status. This raised further questions about the company’s treatment of employees who raise concerns.

Impact on Kuda Technologies’ Reputation

This case puts Kuda Technologies under increased scrutiny, particularly as the company has attracted significant venture capital, including a $55 million Series B round in 2021. With growing pressure on African companies to enhance governance and accountability, Kuda’s response to this legal challenge could significantly affect its reputation and ability to attract top talent in the future.

As Kuda navigates this tumultuous period, the leadership team, particularly CEO Ogundeyi, may face heightened scrutiny regarding their treatment of female employees. The outcome of Hewat’s case could serve as a benchmark for other tech companies, highlighting the critical need for a healthy workplace culture and robust grievance processes.

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