A former executive of the African digital bank Kuda has initiated legal proceedings against the company and its CEO, Babatunde Ogundeyi, in the UK Employment Tribunal, alleging sex discrimination, victimization, and wrongful termination.
According to reports from TechCrunch, Rosemary Hewat, Kuda’s ex-group chief people officer, claims she was forced to leave her position in April 2024 after encountering numerous challenges during her three-year tenure. The documentation submitted to the tribunal paints a picture of a workplace culture that was inconsistent with Kuda’s stated Diversity, Equity, and Inclusion policies, describing it as “intimidating, hostile, degrading, humiliating, and offensive,” particularly for women within the organization.
Hewat alleges that CEO Ogundeyi publicly humiliated two female employees, reducing them to tears by referring to them as “low class” and questioning their “quality or luxury.”
Central to Hewat’s case is a dispute regarding employee stock options (ESOP). She asserts that, upon joining Kuda, she was promised ESOP shares worth hundreds of thousands of dollars based on the company’s Series A valuation. However, when her ESOP grant was issued in April 2022, it was tied to Kuda’s Series B valuation, which significantly increased the stock price and diminished her equity. In contrast, she claims that then-CFO Steven Bastian negotiated a reversion of his shares to the Series A price. When she raised this issue, Ogundeyi allegedly dismissed her concerns, stating that Bastian’s role was “more important” than hers.
In December 2023, Hewat officially recorded her concerns regarding stock allocation and pay disparities, cautioning Kuda that their failure to rectify the situation could qualify as sex discrimination under UK employment law. She declined mediation, and Ogundeyi conducted his own inquiry into the complaint, reportedly ruling in his own favor.
In February 2024, while traveling to Lagos for an Executive Committee retreat, Hewat was terminated. Ogundeyi reportedly later indicated the decision was based on financial considerations, specifically related to foreign exchange factors.
Shortly thereafter, according to Hewat, CTO Mutairu Mustapha acknowledged that her dismissal was a mistake and invited her to return. However, negotiations fell through following Kuda’s refusal to meet her earlier settlement requests and delays in responding to her “Data Subject Access” request.
Kuda subsequently issued Hewat a formal redundancy consultation letter weeks after her termination, and in the months that followed, it halted her salary, canceled her health insurance, and withheld her accrued holiday pay.
Hewat ultimately resigned in April 2024, citing constructive dismissal. She is seeking compensation for unfair dismissal, sex discrimination, emotional distress, and Kuda’s alleged failure to adhere to proper workplace grievance procedures.
Kuda has acknowledged the legal proceedings but has stated it cannot comment on ongoing matters.