Tech giant Google announced updates on its Google Play Developer Program Policy on Wednesday, November 16, affecting mobile loan applications in Kenya.
The policy updates expected to come into force from January 31, 2023 apply to apps which offer loans directly, lead generators, and those who connect consumers with third-party lenders.
According to the announcement by Google, personal loan apps in Kenya are supposed to complete a raft of additional proof of eligibility spelt out in the policy updates.
The new policy requires digital credit providers in Kenya to complete the personal loan app declaration for Kenya and obtain a licence from the Central Bank of Kenya (CBK).
In addition, apps that are not directly involved with money lending will be required to make that obvious to their customers and include their partners’ licences on the Play Store.
The announcement by Google is meant to safeguard the integrity of the Google Play Store that has seen an infiltration of fake mobile loan apps on the platform in the recent past.
These apps have often preyed on unsuspecting Kenyans looking for quick fixes for their financial challenges only to get harassed and embarrassed by agents from these apps looking to recover the money borrowed with exploitative interests.
The move by Google to contain these apps comes less than two months after the Central Bank of Kenya published a list of ten mobile loan apps it had licensed to operate in Kenya.
CBK had received applications from 288 different mobile loan providers who were seeking for a fresh license to operate in the country.
While releasing the list of approved apps, CBK clarified that other providers would be listed as the vetting process continues for those that complied with the application deadline.
Google currently only accepts declarations and licenses from entities published under the Directory of Digital Credit Providers on the official website of the CBK.
President William Ruto has his eyes trained on regulating access to credit, with an aim of weeding out rogue lenders who exploit Kenyans.
