The Central Bank of Kenya (CBK) has revoked the licence of a money remittance provider (MRP), effectively banning the firm from operating in the country’s financial sector. The announcement was made through a public notice published on Thursday, September 19.
According to CBK, the move was made in line with Regulation 44(2) of the Money Remittance Regulations, 2013, which gives the regulator authority to suspend or revoke the licence of an operator failing to meet set requirements.
“It is notified for the information of the general public that pursuant to Regulation 44(2) of the Money Remittance Regulations, 2013, the Central Bank of Kenya has revoked the licence of the Money Remittance Provider,” read part of the notice.
The affected company had already ceased operations on August 15, citing what it termed as “unsustainable market conditions.” In a statement to customers, the provider indicated it was winding up its operations, subject to CBK approval. The latest move by CBK formalizes that exit.
This development highlights the challenges facing smaller players in Kenya’s fast-growing remittance sector, which is dominated by larger, well-capitalized firms and mobile money platforms. The industry has been a crucial channel for diaspora remittances, which remain a significant source of foreign exchange for the country.
CBK emphasized that it will continue to enforce compliance and protect customers from risks posed by unstable financial operators. Customers who had pending transactions with the provider have been advised to contact the company for further guidance on settlements.
The regulator’s decision reinforces its commitment to maintaining stability and integrity within the financial system. As remittance inflows continue to grow, CBK is expected to keep tightening oversight to ensure only compliant and financially sound operators remain active in the sector.
