Central Bank of Kenya (CBK)
Central Bank of Kenya (CBK). SasaPay will offer Mobile Money e-wallet services, which include sending money (Person to Person), agency network, cash in and cash out services (deposit and withdrawals at SasaPay agents). [Photo/ Courtesy]

On Tuesday, October 26, 2021, the Central Bank of Kenya (CBK) revoked the authorisation granted to Mobile Pay Limited (MPL) operating under brand name “Tangaza” as a mobile
Payments Service Provider (PSP).

CBK said the move was reached  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,” said CBK in a statement.

MPL, according to CBK, 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.

CBK said that 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,” added CBK.

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.

Read: From CBK, Another Fat Dividend Cheque For Gov’t

>>> CBK Retains Benchmark Rate At 7%, Signaling Economic Recovery

LEAVE A REPLY

Please enter your comment!
Please enter your name here