The Central Bank of Kenya (CBK) has terminated the operating license of Mobile Pay Limited (MPL), the entity behind the Tangaza payments service, following persistent regulatory breaches. The decision, announced on October 26, 2021, marks the culmination of years of non-compliance by the firm.
CBK cited repeated failures by MPL to file mandated compliance documents, including audited financial reports and security audit records. The regulator stated that despite being granted extended deadlines to rectify these issues, the company’s adherence to regulations continued to worsen, endangering customer funds.
"MPL has persistently failed to discharge its statutory obligations," the CBK statement read. "This includes non-submission of audited annual financial accounts, systems security audit reports, and quarterly compliance filings." The central bank emphasized that the revocation aims to protect consumer interests and maintain trust in Kenya’s national payment system.
CBK has assumed control of MPL’s operations to oversee the distribution of funds held in the Tangaza Trust. A reconciliation process will follow to reimburse customers, though the exact amount at risk remains undisclosed. The regulator noted that MPL’s actions could erode public confidence in digital payment services.
MPL, which began operations in 2011, is the smallest of Kenya’s four mobile money providers, accounting for less than 0.01% of total users. The firm’s website became inaccessible shortly after the CBK announcement. Co-founder and managing director Oscar Ikinu has not responded to requests for comment.
Earlier, Ikinu had stated that MPL would expand beyond mobile money to offer voice, data, and SMS services following its 2019 mobile virtual network operator (MVNO) license approval. The revocation of its payments license now casts uncertainty over these plans.
