Regulator Revokes Mobile Pay Limited As Payments Service Provider

Banking & Finance
Share this story

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.

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 therefore notes 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 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.

Facebook Comments Box
ALSO READ  CBK approves acquisition of Kenya's Mayfair Bank
Pesa pap website bannerWeb banner
By Joan Wambui

If You have News Tips email me on: