Money Remittance Providers might get their licenses back

The suspension of licences for 13 Hawalas could be lifted. This follows a directive by State House to Central Bank to ensure regulations are put in place.

President Uhuru Kenyatta has directed the Central Bank of Kenya to issue comprehensive regulations to guide the operations of Money Remittance Providers (MRPs) popular known as Hawalas that will see the suspension of licenses for 13 registered money remittance providers lifted.

Speaking at State House after meeting security bosses this morning, the President said he had been briefed on progress in the “on-going investigations on the financing of terrorism.”

“I have noted the proposal to lift the suspension of licenses for 13 registered Money Remittance Providers,” stated the President.

The 13 financial institutions were suspended two months ago to allow for investigation on suspicions that they were being used to finance terrorism in the country.

Earlier, relief agencies had urged Kenya to allow the money transfer firms to resume operations.

The agencies expressed concerns that halting remittances will hurt struggling families and relief operations in Somalia.

“Somali families are losing their only formal, transparent and regulated channel through which to send and receive money,” said a statement issued by a group of relief agencies including Oxfam, CARE, Mercy Corps, Adeso and World Vision Somalia.

Kenya took the initiative in an effort to curb the financing of insurgent groups that have terrorized the country following the massacre of 148 students at Kenya’s Garissa University College by Al Shabaab militants.