Tech giant Google announced updates on its Google Play Developer Program Policy on Thursday, April 6, affecting mobile loan applications in Kenya.
Effective May 31, 2023, the new Google update would prohibit loan apps from accessing user contacts or photos either saved on the phone or through external storage.
According to Google, the move is aims to protect users from abuse and harassment.
The tech giant condemned apps that contravened deceptive or harmful financial products and services.
"For the purposes of this policy, we consider financial products and services to be those related to the management or investment of money and cryptocurrencies, including personalised advice.
"If your app contains or promotes financial products and services, you must comply with state and local regulations for any region or country that your app targets - including specific disclosures required by local law," the statement read in part.
In Kenya, Google announced that personal loan apps will be required to complete the personal loan app declaration and provide the requisite documentation.
In addition, apps that are not directly engaged in money lending activities and only provide a platform that hosts the registered sites will need to provide supporting documentation in the declaration.
It's a common phenomenon for the loan apps to require access to phonebooks and media before a user can access their services.
However, some apps were accused of charging exorbitant interest rates making it difficult for many borrowers to repay loans. Subsequently, this would lead to random calls to one's family, friends and co-workers in a bid to impel them to paying the debt.
The development came after dozens of loan apps were pulled down after Google's January update required them to submit proof of license.
