CBK revokes mobile payments service provider

Central Bank has revoked one of the only 4 mobile payment providers in Kenya and issued a directive on how Kenyans will get their money.

Central Bank of Kenya Governor Dr Patrick Njoroge

The Central Bank of Kenya (CBK) has today, Tuesday, October 26, 2021, revoked the

authorisation granted to Mobile Pay Limited (MPL) (brand name “Tangaza”) as a mobile

Payments Service Provider (PSP), pursuant to the provisions of Section 15 (1) (b) of the

National Payment System (NPS) Act, 2011 and Regulation 10 of the National Payment

System (NPS) Regulations, 2014.

Tangaza enables customers to send/receive money, make retail payments through their phones, at Tangaza pesa agents, online and at other points of service in the market.

According to a statement from CBK, this action culminates a long engagement between CBK and MPL, during which CBK has considered MPL’s continued violations of NPS law and regulations.

MPL has persistently failed to discharge its statutory obligations, among others, non-submission of audited annual Financial Accounts of the Trust Fund (Tangaza Trust) and MPL, non-submission of annual systems security audit report, and non-submission of quarterly reports for CBK's oversight.

"While MPL was granted sufficient time to address its violations, its compliance has continued to deteriorate, putting customer funds at risk,” CBK’s statement read.

CBK, therefore, noted that the conduct of MPL and its Trustees could erode public trust,

and the revocation of MPL’s authorisation as a Payments Service Provider will protect

the interests of its customers and maintain confidence in the National Payment System.

Pursuant to Regulation 10 (5) (b), CBK has taken over control of the business of MPL to

safeguard and facilitate the distribution of the money in the Trust Fund.

CBK will undertake a reconciliation of MPL customers' balances against the Trust Fund accounts, and then commence reimbursing the customers. Pursuant to Regulation 10 (9), the Trustees are personally liable for any shortfall in the Trust Fund.

The reconciliation is expected to be completed within two weeks.

MPL is the smallest of the four mobile Payments Service Providers in Kenya, with less

than 0.01 percent of total mobile money subscribers, and has been operating since 2011.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Ex-Mwingi Central MP Joe Mutambu involved in grisly road accident

Ex-Mwingi Central MP Joe Mutambu involved in grisly road accident

Fire incident reported at Maranda High School

Fire incident reported at Maranda High School

River Enziu disaster: Uhuru condoles with victims' families, warns motorists against crossing swollen rivers

River Enziu disaster: Uhuru condoles with victims' families, warns motorists against crossing swollen rivers

Sonko announces Sh250,000 reward for stolen furniture

Sonko announces Sh250,000 reward for stolen furniture

Update: Death toll rises to 24 in Kitui river bus tragedy

Update: Death toll rises to 24 in Kitui river bus tragedy

Germany's Chancellor Merkel bows out in style [PHOTOS]

Germany's Chancellor Merkel bows out in style [PHOTOS]

Expect internet services from Kenya Power

Expect internet services from Kenya Power

Purchasing new embassies will cost Sh5 billion per year - Foreign Affairs

Purchasing new embassies will cost Sh5 billion per year - Foreign Affairs

Westlands MP's plan to transform Nairobi into Smart City

Westlands MP's plan to transform Nairobi into Smart City