CBK BLOCKS KENYANS FROM SENDING MONEY THROUGH MOBILE PHONES.

The Central Bank of Kenya has revoked the authorisation to a mobile money transfer company, announcing its immediate takeover on Tuesday, October 26.

CBK announced that the authorisation granted to Mobile Pay Limited (MPL) under the brand name Tangaza as a Mobile Payment Service Provider has been revoked.

Through a press statement, CBK noted that the decision to revoke follows a series of engagement meetings between the two parties that culminated after continued violation of the regulations set aside guiding their operations.

The country’s top bank further cited the failure to submit financial records among the reasons why Mobile Pay Limited has been revoked.

“This action culminates a long engagement between CBK and MPL, during which CBK has considered MPL’s continued violations of NPS law and regulations.

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,” part of CBK’s statement read.

CBK also explained that the failure by mobile transfer company’s failure to abide by the laid down protocols was risking their customers’ funds.

“While MPL was granted sufficient time to address its violations, its compliance has continued to deteriorate, putting customer funds at risk.”

The statement added: “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.”

Central Bank has, however, assured customers that they will work with the mobile transfer company to ensure that the funds are reimbursed to those who will be affected by the revocation. The process is expected to take weeks.

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

MPL has been in operation in Kenya since 2011. It has less than 0.01 per cent of total mobile money subscribers in the country being the smallest company offering mobile transfer services.

By kenyans