⚠️ Critical Warning
Over 500 loan apps were removed from Google Play Store in 2023 for operating without licenses. 337 lenders banned from reporting to CRB. Only borrow from CBK-licensed lenders.
The Loan App Scam Crisis in Kenya
Kenya's digital lending market exploded from 10 apps in 2016 to over 800 applications by 2025. But only 195 were licensed — a shocking 76% rejection rate.
The unlicensed majority engaged in harassment, charged 200%+ interest rates, and violated data privacy. Thousands of Kenyans fell victim to loan app scams that destroyed their credit scores and mental health.
This guide exposes every known scam lender, shows you how to verify legitimacy, and helps you avoid becoming the next victim.
Scale of the Problem
Complete Blacklist: 62 Unlicensed Lenders
The Central Bank of Kenya officially barred these 62 digital lenders from accessing Credit Reference Bureaus in 2020. Many still operate illegally:
Major Apps (Now Licensed or Removed)
Still Unlicensed/Problematic (62 total)
NOTE: Some apps like Tala, Branch, and Zenka were later licensed. Always verify current status on CBK's official list.
Apps Fined for Harassment & Data Abuse
These lenders faced official penalties from Kenya's Office of the Data Protection Commissioner:
KeCredit & Faircash
KES 2.97 millionCompany: Mulla Pride Ltd (now Azura Credit)
Year: 2023
Violation: Shaming borrowers by contacting friends and family
Whitepath
KES 250,000 ($2,000)Company: Unknown
Year: March 2025
Violation: Added guarantor without consent, harassment
Fadhili Microcredit
KES 5 millionCompany: Fadhili Microcredit Ltd
Year: 2023
Violation: Accessing users' contacts without permission
Ipesa & KashWay
Under investigationCompany: XGO Kenya Ltd
Year: 2024-2025
Violation: Repeatedly scrutinized for unethical practices
Red Flags: How to Spot a Scam Lender
If a loan app shows ANY of these signs, do not download or borrow:
1. Not on CBK's Official List
Only 195 lenders are licensed. If it's not on the CBK website, it's illegal.
2. Requests Full Contact Access
Legitimate lenders don't need your entire phone book. This is for harassment.
3. Interest Rates Over 100% APR
Licensed lenders cap at 14-90% APR. Scams charge 200-400% or hide fees.
4. No Physical Address in Kenya
Many scam apps operate from China or outside Kenya with no local office.
5. Demands Upfront Fees
"Processing fees" or "insurance" before loan approval = scam.
6. Poor/Fake Reviews
Check Google Play reviews. Scams have 1-2 stars or suspiciously perfect 5 stars.
7. Threatens "Legal Action" Immediately
Unlicensed lenders have no legal standing. This is intimidation.
8. Contacts Your Family/Friends
Illegal debt collection tactic. Report to ODPC immediately.
How to Verify if a Lender is Legitimate
Follow these 3 steps before borrowing from ANY loan app:
Check CBK's Official List
Visit the Central Bank of Kenya website or PesaMarket's verified list of 195 licensed lenders.
View 195 Licensed Lenders →
Verify License Number
Legitimate lenders display their CBK license number in the app and on their website.
Usually format: DCP/XXX/YYYY
Check Company Registration
Search the lender on eCitizen Business Registration Portal to confirm they're a registered Kenyan company.
Must have KRA PIN and physical address
What to Do If You've Been Scammed
If you borrowed from an unlicensed lender or experienced harassment:
1. Stop Paying Immediately
Unlicensed lenders have no legal right to collect debt. Do NOT send them money.
2. File ODPC Complaint
Report data abuse and harassment to Office of the Data Protection Commissioner.
File Complaint Online →4. Block the App's Numbers
Block all phone numbers and uninstall the app immediately.
5. Check Your CRB Status
Unlicensed lenders were barred from CRB in 2020. If they listed you, dispute it.
How to Dispute CRB Listing →6. Warn Others
Share your experience online to protect others from the same scam.
Your Legal Rights Against Scam Lenders
Kenya's laws protect you from predatory lending:
CBK Act (2021 Amendment)
Only licensed DCPs can legally lend. Unlicensed = illegal operation.
⚖️ Up to KES 2 million fine for unlicensed lending
Data Protection Act (2019)
Lenders cannot access your contacts without explicit consent.
⚖️ KES 5 million fine or 2% of annual turnover
Consumer Protection Act
No harassment, threats, or public shaming for debt collection.
⚖️ Criminal charges + civil damages
Business Laws Amendment (2025)
Banned harassment by microfinance and digital lenders.
⚖️ Enforceable penalties and license revocation
Only Use These 195 CBK-Licensed Lenders
We maintain a complete, up-to-date list of all 195 CBK-approved digital credit providers including:
- ✓188 Digital Credit Providers
- ✓8 Licensed Banks (KCB, Equity, etc.)
- ✓3 Microfinance Institutions
- ✓Full company details + verification
Common Questions
Can unlicensed lenders report me to CRB?
No. CBK banned all unlicensed lenders from CRB access in 2020. If they threaten CRB listing, it's an empty threat. Report them to ODPC.
Do I have to repay an unlicensed lender?
Legally, no. Unlicensed lenders operate illegally and have no legal standing to enforce debt. However, consult a lawyer for your specific situation.
How did these scam apps get on Play Store?
Many operated before Google's 2023 licensing requirement. Google removed ~500 apps in March 2023. Always check CBK license regardless of Play Store presence.
Is OKash/MoKash still operating?
No. Both were removed from Play Store in 2023 and cannot legally operate in Kenya. Avoid any websites or APKs claiming to be these apps.
What if my lender WAS licensed but isn't anymore?
Check CBK's current list. Some lenders lost licenses for violations. If delisted, stop payments and report to CBK.
Can I sue a scam lender for harassment?
Yes. You can file civil suit for damages under Consumer Protection Act and Data Protection Act. Many victims have won KES 100K+ in damages.
The Bottom Line
- →Over 600 unlicensed lenders scammed Kenyans between 2016-2023
- →Only 195 lenders are CBK-approved as of December 2025
- →Unlicensed lenders cannot legally collect debt or report to CRB
- →You have legal recourse: ODPC complaints, CBK reports, and civil suits
- →ALWAYS verify on CBK's official list before borrowing
Verify Your Lender is Legitimate
Check our complete list of 195 CBK-licensed lenders before you borrow
Sources & Data
• Silicon Africa - Full List of Fake Loan Apps in Kenya 2025/2026
• Techweez - List of Digital Lenders Denied CRB Access by CBK
• People Daily - CBK licenses 42 more digital lenders
• Business Daily - 337 digital mobile lenders ejected from CRB listing
• TechNext - Kenyan loan app Whitepath fined $2,000
• Context - Kenya cracks down on loan apps abusing customer data
• TechCrunch - Google removes hundreds of Kenya-focused loan apps