This archive report was first published on 27 October 2021.
On October 27, 2021, the Central Bank of Kenya (CBK) took a significant step to protect the interests of customers and maintain confidence in the National Payments System by revoking the license of Tangaza, a mobile payments service provider.
Tangaza, also known as Mobile Pay Limited (MPL), had been given sufficient time to address its violations, but the CBK said the PSP's compliance continued to deteriorate, putting customers' funds at risk.
According to the CBK, Tangaza had persistently failed to discharge its statutory obligations, including the non-submission of annual systems security audit reports and quarterly reports for CBK's oversight.
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.
Tangaza 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.
