The hardline Shebab Islamists who control a large swathe of Somalia said today they were banning mobile money transfers in the regions under their control.

The government condemned the move, alleging that the Shebab slapped the ban in retaliation for a refusal by some mobile transfer companies to let the insurgent group use their services to fund their military activities.

"After confirming the risk of using the mobile money transfer service, Shebab Al-Mujahideen decided to ban the service from Somalia," the Al-Qaeda-inspired group said in a statement.

"The companies Telesom, Golis and Hormuud which developed the service in the country so far should stop it," the statement read, giving the three partner operators three months to comply.

The Shebab argue that the service, which is now offered in almost every region where people have access to mobile phones, allows Western interference in the economy through the mobile operators' foreign partners.

"We hope that Muslim communities in Somalia will liberate themselves from Western exploitation," the statement said.