Syed Imran Haider 
Google has removed several loan applications from its Play Store in Kenya. The news came after the launch of its new policy, entailing digital lenders in Kenya to submit license proof in January 2023. The company issued the new policy following South African country’s Digital Credit Providers regulations in 2022. It required entities providing loans digitally to obtain a license to function from the Kenyan Central Bank.
Since Google did not immediately comment on the news, it is still unknown how many loan apps it had blocked. According to some digital media channels, the tech giant previously took down around 500 apps in the finance category on Google Play Store, including Okash and MoKash. Last month, Google removed 675 applications in the Finance category, listing banking, investing, and loan apps among others. The Play Store now lists only 198 finance-based apps in Kenya.
The Central Bank of Kenya revealed that around twenty-two digital lenders received a license out of 381 applicants. These comprised a B2B embedded lending platform named Pezesha, a financial & lending service known as Jumo, and a PayPal-backed loan provider, Tala.
Removal of Hundreds of Finance-based AppsÂ
Google calls for loan apps expecting a license for declaration form attesting to obtain interim approval valid for 45 days and lists it on the Play Store. Many credit applications would offer quick and unsecured business or personal loans and apply debt-shaming strategies for cash recovery before the DCP went into force.
They used to cost excessive interest rates, share customer information with third parties, and benefit from the lacking regulation and Slack vetting process of the Play Store. Digital Credit Providers Regulations aimed to remove rogue players and require loan apps to observe data protection rights, consumer privacy, and anti-money laundering rules.
Many say it is a bonus besides revealing the terms and loan pricing to customers before they get approval for loans and the disbursement process.
Clamps Down on Illegal Kenyan Apps in Nigeria
Google had reportedly heard of mismanagement or scam practices in loan apps downloaded from its Play Store and decided to make rules to prevent harm to potential users. Accordingly, the tech company now requires Kenya-based loan app developers to submit proof of license in the country. If they fail to do so, Google will remove their apps from its digital distribution service, Play Store.
App developers who have approached for Central Bank of Kenya to obtain a license can submit evidence of the same. Tech analysts say Google has taken sluggish action two after the management passed DCP regulations to protect money borrowers from rogue apps. Many such apps followed predatory lending practices and used debt-shaming strategies for recovery.
Accordingly, Google expects new and old Kenya-based apps to submit the required data and documents or become locked by the end of January 2024. The tech company will take similar action in the Philippines, Indonesia, and India.
Google says developers of personal loan apps with a Kenyan target audience need to complete a declaration form and submit the required documentation before bringing their relevant app to the App Store. The company will remove personal loan Kenya-based apps without proper license attribution and declaration from its app distribution service.
