Tala loan app among companies to get data control licenseSeptember 8, 2022
Fintech firm Tala loan app is among the companies to receive data control license in Kenya.
Tala is mainly known for offering easy to access mobile phone loans, and together with Branch were the pioneers in this field.
However, many digital lenders are under fire for misusing customer data by sharing them with third parties or using them vindictively to recover loans.
Regulating data collection and loan apps
The Central Bank of Kenya moved to blacklist most of them and only those which meet the newly created stringent measures will be allowed to operate.
The Office of Data Protection Commissioner (ODPC) has now approved Tala as a data controller in Kenya.
The company now has power to control personal data processing. It will determine the purpose and the means of processing that data.
It also has power to instruct another legal, certified and regulated entity or third party to process data on its behalf.
Tala loan app General Manager Munyi Nthigah said the company legitimately asks for data in order to help consumers access Tala products.
He also said the form provides full disclosure about how it uses customer’s data. To know how your data is used, read the privacy policies.
Since Tala like many loan apps does not use CRB information to process loans, it uses the data collected to verify your identity and build your credit profile.
The company is now diversifying its product portfolio and currently has 3.5 million customers according to Nicola Muriuki, Tala’s Legal Director.
The Data Protection Act, 2019 requires all companies that ask for data to register their firms and prove their data handling capabilities and security measures.
According to the ODPC, 332 entities have certificates of registration as at as of September 2. 459 firms are still at the registration stage. Applications of 64 other companies are under review. 805 are yet to make payments to complete registration.