Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge during a press briefing in Nairobi, Kenya/ CBK.
NAIROBI Kenya, Oct 26- Tangaza, a Mobile Payment Service Provider, has had its license revoked by the Central Bank of Kenya (CBK) for failing to discharge its obligations under the National Payments System(NPS) Act and Regulations.
According to CBK the firm has repeatedly failed to submit compliance reports including audited financial reports as required by the financial regulator.
“This action culminates a long engagement between CBK and MPL, during which CBK has considered MPL’s continued violations of NPS (National Payments System) law and regulations,” CBK said in a statement.
Under the brand name ‘Tangaza’, Mobile Pay Limited (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.
The banking regulator said while the firm was granted sufficient time to address its violations, its compliance has continued “to deteriorate,” putting customer funds at risk. CBK did not reveal the amount of funds at risk.
The regulator however said 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.
“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,” the regulator said.
MPL is the smallest of the four mobile Payments Service Providers in Kenya, with less than 0.01 per cent of total mobile money subscribers according to the regulator.