KENYA: Safaricom Revokes API Access for PrivPay Over Alleged Policy Violations

Safaricom has revoked the API access previously granted to PrivPay, a Kenyan fintech startup that facilitated anonymous M-PESA transactions. The decision was reportedly due to policy violations, including unauthorized use of customer data for marketing and the integration of a third-party API, Daraja, into its operations—practices Safaricom claims are against its policies.

PrivPay, which shut down in May 2023, asserted that it had secured Safaricom's approval for its business model before launching. However, the telecom giant later demanded that PrivPay obtain a Payment Service Provider (PSP) license from the Central Bank of Kenya (CBK), citing concerns over compliance with Kenya’s Anti-Money Laundering regulations.

Despite PrivPay's defense of its data handling practices, Safaricom insisted on a letter of no objection from the CBK as a requirement for the startup's continued operation. PrivPay, which claimed to have 30,000 users, did not pursue the PSP license, citing the high costs and lengthy approval process.

SOURCE: AGENCIES