Kenyan Regulator Bans Unlicensed Brokers From Using M-Pesa for Payment Processing: “Regulators are currently considering a proposal that would ban M-Pesa to provide funds to unlicensed vendors. This proposal is still under consultation with the public and other relevant authorities, as it is still subject to public discussion. The Kenyan M-Pesa Commission [was] also exploring ways to enhance and further develop M-Pesa to meet the needs of the customers.
According to a spokesperson from Kenya’s M-PESA board, “M-PESA does not operate and accept any money transfers until the proposal is approved by the Kenyan M-PESA regulator.” “We hope to have our regulators’ proposals to ban brokers from using M-Pesa approved in January,” the spokesperson concluded.
According to Kenyan M-PESA director David Kimaiyo, “The Kenyan M-PESA regulator will be discussing this issue with the Kenya M-PESA Association on Friday. We will work through the proposal with our members to ensure that it’s acceptable to them and their customers. If the regulator concludes that there are certain restrictions that they need to implement, they will notify us accordingly.”
“We expect all Kenya M-PESA operators will be informed about the regulations when we get to know them, but we cannot give a date until they are announced officially,” the M-PESA spokesperson stated. “If there is no clarity within the next couple of weeks, we will have to decide whether or not we will continue working with our brokers that will continue to accept transfers from M-PESA clients.” “The Kenya M-PESA Association has to ensure that the regulations are in line with those of Kenya and that there are no loopholes in the regulation that could lead to conflicts in the future.
There was an internal meeting between the M-PESA board and the Kenyan M-PESA Association regarding the proposed restrictions on brokers from using M-Pesa to accept transactions. “This issue is likely to come up during the January meeting when the Regulators will be discussing their proposed regulation on brokers from M-PESA. Our members must ensure that their brokers are able to continue accepting transactions in accordance with the current Kenya M-PESA regulation and not the proposed regulation that may come into force in January.”
Regulators said that they will be considering options to increase their review and inspection capacity of Kenyan M-PESA brokers. “When they finish their examination of brokers from Kenya, we’ll know if they have to stop accepting transactions from M-PESA. clients because of this new regulation,” the spokesperson concluded.