Google play to ban loan apps that don’t comply with CBK rules

Google has announced that it will ban mobile loan applications that do not comply with the Central Bank of Kenya (CBK) regulations.

The move comes after CBK licensed 10 digital credit providers in the country, locking out 288  that had been operating in the country.

The rise of digital money lending applications has brought up a concern since nearly 4 out of ten Kenyans have at one point used mobile apps to access loans, especially during the pandemic.

“Currently we only accept declarations and licenses from entities published under the Directory of Digital Credit Providers on the official website of the CBK,” Google said.

Here is what the new policy states.

• Lenders should complete the Personal Loan App Declaration for Kenya, and provide the necessary documentation to support their declaration.
• Digital Credit Providers (DCP) should complete the DCP registration process and obtain a license from the Central Bank of Kenya (CBK). You must provide a copy of your license from the CBK as part of your declaration.
• If you are not directly engaged in money lending activities and are only providing a platform to facilitate money lending by registered DCP(s) to users, you will need to accurately reflect this in the declaration and provide a copy of the DCP license of your respective partner(s).
• Currently, we only accept declarations and licenses from entities published under the Directory of Digital Credit Providers on the official website of the CBK.

The new policies will commence on January 31st 2023.

Edited by Bosco Marita