The Central Bank of Kenya (CBK) has revoked the operating license of Mobile Pay Limited (MPL) “Tangaza” over continued violation of laws including the failure to submit audit reports.
In a statement to newsrooms on Tuesday, CBK Governor Patrick Njoroge said the regulator has taken over control of the business of MPL to safeguard and facilitate distribution of the clients’ money in the Trust Fund.
“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,” the statement reads.
CBK noted that allowing Tangaza to continue with its services 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.
“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,” Njoroge added.
The reconciliation is expected to be completed within two weeks.
Tangaza is the smallest among the four mobile payment service providers in Kenya including M-PESA and Airtel Money.
The provider with less than 0.01 per cent of total mobile money subscribers has been operating since 2011.