The Central Bank of Kenya (CBK) on Tuesday revoked the license of mobile money transfer service Mobile Pay Limited popularly known as ‘Tangaza’ which was faulted for continued violation of laws including the failure to submit audit reports.
The regulator, in a statement, said it had subsequently taken over control of the business of MPL to safeguard and facilitate distribution of the clients’ money in the Trust Fund.
The reconciliation is expected to be completed within two weeks.
“CBK will undertake a reconciliation of MPL customers’ balances against the Trust Fund accounts, and then commence reimbursing the customers, the Trustees are personally liable for any shortfall in the Trust Fund,” the regulator said.
Tangaza, which is among the four providers including MPESA, and Airtel Money was also faulted for failing to submit annual systems security audit reports and quarterly reports for CBK’s oversight
“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, nonsubmission of annual systems security audit report, and non-submission of quarterly reports for CBK’s oversight,” the regulator said.
Failure to revoke the license would put customers’ funds at risk CBK stated adding that the move was meant to protect the interests of its customers and maintain confidence in the National Payment System.
MPL which has been operating since 2011 has less than 0.01 percent of total mobile money subscribers.
Payments service providers are regulated by CBK 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.