A License to Prey: Investigating the Impact of Digital Loan App Regulations on Permission Requests and Privacy Policies in the Kenyan Market

The availability of mobile money in Kenya has positively impacted commerce, financial transaction efforts, and the ability of individuals to receive and save their money. The addition of mobile loan applications provides access to loans without the hassle of going to a physical bank and, in some cases, completing paperwork. While it has its benefits, limited protection of user data has been a cause for concern. User complaints prompted a change in the mobile loan industry, requiring applications to be licensed and banning the use of specific permissions for Android versions of the apps placed in the Google Play Store. We investigate the impact of this change and explore ways to improve regulation by reviewing 30 licensed (n=15) and unlicensed (n=15) Kenyan-targeted digital lender apps. The results suggest that regulation has not yet had a significant impact on digital lender app development and thus encourages government-supported development guidelines and audits.