Google is cracking down on unlicensed loan apps in Kenya by requiring them to obtain and provide proof of a license from the Central Bank of Kenya (CBK) before being listed on the Play Store. This move aims to curb the proliferation of rogue lenders that have plagued the Kenyan market.
Under the new policy, only loan apps with official CBK licenses will be allowed on the Play Store. Apps still awaiting approval can obtain a temporary 45-day listing, but must reapply every 45 days until they receive a license or their application is rejected.
This action by Google follows similar measures taken in other countries like India, Indonesia, and the Philippines, where loan apps are also required to have the necessary regulatory approvals. In Nigeria, Google mandates that loan apps have a verifiable approval letter from the Federal Competition and Consumer Protection Commission.
This policy change comes as Kenya strengthens its regulations for digital lenders. Only 22 out of 381 applicants have received licenses so far. The new rules aim to protect borrowers from predatory lending practices, such as:
- Debt-shaming tactics: This includes posting personal information online, making unauthorized calls and messages, and accessing contact lists for coercion.
- Data privacy violations: Loan apps often collect sensitive data like contact lists and message histories without proper consent.
- Lack of transparency: Rogue lenders often fail to disclose their pricing models and terms and conditions clearly.
By implementing these stricter requirements, Google and Kenyan authorities hope to create a more responsible and transparent digital lending market that protects both borrowers and legitimate lenders.
