This archive report was first published on 22 August 2019.
Kenya's mobile loan market has seen significant growth in recent years, with many Kenyans turning to short-term loan apps for financial assistance.
According to analytics platform SimilarWeb, four out of the top 10 free apps on the Google Play Store in Kenya are finance category apps that offer loans, including Tala, Branch, OKash, and OPesa.
However, Google's updated developer policies may pose a challenge to these popular loan apps. The policy update indicates that apps promoting personal loans with repayment periods of 60 days or less may not be welcome on the Google Play Store.
Tala, which has been available in Kenya for the past five years, has announced a USD 110 million funding round to accelerate financial inclusion worldwide. The app has a significant user base in Kenya, with over 2.5 million users.
Other loan apps, such as OKash and OPesa, have been criticized for exploiting users' ignorance by sneaking in terms of use that violate their privacy.
While some apps, like Timiza from Barclays Bank of Kenya, may comply with the policy update, others may face challenges in meeting the requirements.
It remains to be seen how Google's updated policy will affect Kenya's short-term loan apps and their users.
