The Central Bank of Kenya (CBK) has stated that Mobile Pay Limited (MPL), whose service brand name is Tangaza Pesa, has had its license withdrawn due to regulatory violations. According to CBK, the firm failed to file compliance reports, including audited financial reports, as required by the financial regulator on multiple occasions.

“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,” said CBK in a statement.

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“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.”

Here Is What You Need To Know

• While the firm was given enough time to address its violations, the banking regulator said its compliance has continued to “deteriorate,” putting customer funds at risk. The amount of money at risk was not disclosed by CBK.

• The regulator, on the other hand, stated that MPL’s and its Trustees’ actions could jeopardize public trust, and that revoking MPL’s authorization as a Payments Service Provider will protect its customers’ interests and maintain public 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,” it said.

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“CBK will undertake a reconciliation of MPL customers’ balances against the Trust Fund accounts, and then commence reimbursing the customers.”

A Look At What Tangaza Does

Founded in 2011 by Oscar Ikinu, who also doubles as the managing director, CBK said MPL is the smallest of Kenya’s four mobile payments service providers, with less than 0.01 percent of total mobile money subscribers. The firm’s website reportedly fell offline shortly after the regulator’s notice. 

“While we continue with mobile money services as our core business, our customers will also access voice, data, and SMS services,”Mr Ikinu was cited as stating (CA) when the Communication Authority gave the company a mobile virtual network operators (MVNOs) license.

Tangaza central bank kenya Tangaza central bank kenya

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning write