The Central Bank of Kenya (CBK) has revoked the operating license of Mobile Pay Limited, operating as Tangaza, as a mobile payment service provider (PSP). CBK revoked the license on grounds of violating the National Payment System (NPS).
According to the CBK, MPL persistently failed to discharge its statutory obligations among others non-submission of audited annual financial accounts of the Trust Fund (Tanga Trust).
Other conditions the service provider failed to adhere to were submission of annual system security audit report and non-submission of quarterly reports for CBK’s oversight.
CBK also explained that the failure by Mobile Pay Limited’s to abide by the laid down protocols was risking their customers’ funds.
“While MPL was granted sufficient time to address its violations, its compliance has continued to deteriorate, putting customer funds at risk,” said CBK in a statement.
The revocation is pursuant to the provisions of section 15 (1) (b) of the National Payment Act, 2011 and regulations of the NPS Regulation 2014.
Central Bank has, however, assured customers that they will work with the mobile transfer company to ensure that the funds are reimbursed to those who will be affected by the revocation. The process is expected to take weeks.
“CBK will undertake a reconciliation of MPL customers ‘ balances against the Trust Fund accounts, and then commence reimbursing the customers. Pursuant to Regulation,” further read the statement.
MPL has been in operation in Kenya since 2011. It has less than 0.01% of total mobile money subscribers in the country being the smallest company offering mobile transfer services.