The Central Bank of Kenya (CBK) has revoked the authorisation granted to Mobile Pay Limited (MPL) which has the brand name Tangaza as a mobile Payments Service Provider (PSP).
The regulator said the action culminates a long engagement between them and Mobile Pay Limited, during which they considered MPL’s continued violations of Nation Payment Systems law and regulations.
Mobile Pay Limited 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. While MPL was granted sufficient time to address its violations, its compliance has continued to deteriorate, putting customer funds at risk.
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.
“Pursuant to Regulation 10(5)(b), CBK has taken over control of the business of MPL to safeguard and facilitate 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.” CBK in its press release.
The regulator further added that the conduct of Mobile pay limited 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.
Mobile pay limited is the smallest of the four mobile Payments Service Providers in Kenya, with less than 0.01 per cent of total mobile money subscribers, and has been operating since 2011.
Read also; CBK to Supervise Digital Lenders Under New Bill.
