‘Tangaza’ a Mobile Payments Service Provider, also known as Mobile Pay Limited(MPL), has had its license revoked as a Payments Service Provider(PSP) by the Central Bank of Kenya(CBK).
This is in accordance with provisions in the National Payments System(NPS) Act and Regulations.
In a statement, CBK said that Tangaza has continued to violate the National Payment System laws and regulations and has persistently failed to discharge its statutory obligations. These include non-submission of annual systems security audit reports and quarterly reports for CBK’s oversight.
While Tangaza was given sufficient time to address its violations, CBK said the PSP’s compliance has continued to deteriorate, putting customers’ funds at risk.
CBK said it took the action to ensure public trust is not eroded, protect the interests of customers and maintain confidence in the National Payments System.
CBK has now taken control of the business of MPL to safeguard and facilitate the distribution of cash in the firm’s Trust Fund. It will also undertake a reconciliation of MPLC customers’ balances and then commence the reimbursement process. Trustees will be personally liable for any shortfall in the Trust Fund with the reconciliation to be completed within the next fortnight.
MPL is the smallest of the four mobile Payments Service Providers in Kenya, with less than 0.01% of the total money subscribers and has been in operation since 2011.
The CBK said it will provide regular updates concerning MPL in the coming days.
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