- Accounts reconciliation for the firm is expected to be completed within two weeks.
- It has been in operation since 2011
The Central Bank of Kenya has revoked the operating license of Mobile Pay Limited over gross violation of law and regulations of the National Payment System.
In a statement, the regulator has accused the mobile payments service provider commonly known as Tangaza of persistently failing to discharge its statutory obligations, among others, non-submission of audited annual financial accounts of the Trust Fund (Tangaza Trust) and MPL.
According to CBK, the firm has also failed to submit annual systems security audit reports and non-submission of quarterly reports for CBK’s oversight.
''This action culminates a long engagement between CBK and MPL, during which CBK has considered MPL’s continued violations of NPS law and regulations,'' CBK said.
The apex bank says the service provider, the smallest of the four mobile PSPs in Kenya, with less than 0.01 per cent of total mobile money subscribers failed to address its violations despite being granted sufficient time.
''CBK, therefore, notes that the conduct of MPL and its Trustees could erode public trust, and the revocation of MPL’s authorisation as a PSP will protect the interests of its customers and maintain confidence,'' CBK said.
The banking regulator has taken over control of the business of MPL to safeguard and facilitate the distribution of the money in the Trust Fund.
It will also undertake a reconciliation of MPL customers’ balances against the Trust Fund accounts, and then commence reimbursing the customers.
Accounts reconciliation for the firm that has been in operation since 2011 is expected to be completed within two weeks.