Google has announced policy changes that will impact loan apps hosted on its Play store. According to the updated personal loans policy, apps facilitating personal loans will not be allowed to access user contacts or photos. The changes will be implemented on May 31, 2023, in a bid to enhance privacy and data protection.
Many loan apps in Kenya require access to user contacts before a loan is approved, and they often misuse this data to debt-shame defaulters by spamming their contacts with messages and calls. Additionally, loan apps frequently ask users to submit a photo for identity verification before loan disbursement, which can also be misused.
Earlier this year, Google announced that loan apps without proof of licensing from the Central Bank of Kenya (CBK) would not be allowed on its app store. This move resulted in the removal of hundreds of loan apps from the Play store in March.
The CBK has also licensed ten more digital credit providers, bringing the total number of licensed digital lenders in Kenya to 32. The CBK has emphasized that it is working with the Office of the Data Protection Commissioner in the licensing process.
