The Central Bank of Kenya (CBK) has terminated the operating license of Mobile Pay Limited (MPL), the provider behind the mobile money service Tangaza, following repeated violations of regulatory obligations. The decision, announced on October 26, 2021, stems from the company's failure to submit required financial and security audit reports, as well as quarterly compliance documents.
CBK stated it has assumed control of MPL's operations to safeguard customer funds held in the Tangaza Trust. A reconciliation process will determine the exact balance of client assets before reimbursements begin, with trustees personally liable for any shortfalls. The regulator emphasized that continued operation without a license would jeopardize customer interests and the integrity of Kenya's payment system.
MPL, which launched in 2011, holds less than 0.01% of Kenya's mobile money user base. The company was one of four licensed providers required to adhere to the National Payment System (NPS) Act of 2011 and its 2014 regulations. Non-compliance included missing annual financial statements for the Tangaza Trust and unsubmitted systems security audits.
