Google Deletes Kenyan Loan Apps from Play Store for Lacking CBK Licenses

As part of its enforcement of laws against unlicensed lenders, Google has deleted Kenya loan apps from the Play Store.

This follows a regulation that came into effect in January that requires loan applications to be registered.

The Central Bank of Kenya must issue licenses to providers before they can participate in Kenya’s Digital Credit Providers (DCP).

A spot-check by one local daily shows that OKash and MoKash, among others, had been removed.

The Central Bank of Kenya (CBK) granted permission for DCPs including MFS Technologies Limited, Letshego Kenya Ltd, and Tala Inventure Mobile Limited (Trading as Tala) to offer credit services in the country in January.

Sevi Innovation Limited, Tenakata Enterprises Limited, Umoja Fanisi Limited, and Zanifu Limited were some of the additional companies. Ngao Credit Limited, Pezesha Africa Limited, and Natal Tech Company Limited.

At the time, CBK had approved 22 DCPs out of a total of 381 in the country.

The Central Bank Amendment Bill, 2021 received former president Uhuru Kenyatta’s approval in December 2021, enabling the CBK to control non-deposit-taking credit companies.

It allows CBK the authority to terminate any DCP that violates data privacy by going after borrowers and charging them exorbitant interest rates.

“The licensing and oversight of DCPs as indicated previously were precipitated by concerns raised by the public about the predatory practices of the unregulated DCPs, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information.”