Digital credit provider Tala has laid off 28 employees from its customer operations team in a strategic move aimed at reallocating resources towards market expansion and product development. The layoffs represent less than three percent of Tala’s total workforce, the company confirmed in a recent statement.
The decision, according to Tala, follows a noticeable drop in customer support queries in recent months. This trend has been attributed to improved borrower behavior, with many now managing their loan repayment timelines more efficiently in alignment with their income cycles.
“Twenty-eight positions in the customer operations team were declared redundant. This represents less than 3% of Tala’s workforce, and Tala shall redirect these resources towards market expansion and product development,” the company said.
Tala, which began operations in Kenya in 2014 under the name Mkopo Rahisi before rebranding in 2016, is among the pioneers of digital lending in the country. It competes with major players such as Safaricom’s M-Shwari and Fuliza, which are integrated with the M-Pesa platform, as well as other independent digital lenders like Branch.
Despite the staff reductions, Tala reports robust performance, boasting a loan repayment rate of over 95 percent an indicator of increasing customer discipline and trust in digital credit services.
Kenya has witnessed rapid growth in digital lending, driven by the widespread use of mobile money, more flexible loan terms, and enhanced regulatory oversight by the Central Bank of Kenya (CBK). A CBK report released in December 2024 revealed that the number of Kenyans borrowing from microfinance institutions and digital lenders has surged over fivefold since 2021.
As of October 2024, the CBK had licensed more than 85 digital credit providers to operate in the Kenyan market, signifying growing confidence in the sector and its regulation.
Tala’s decision to streamline its operations and invest in innovation signals a maturing digital credit market where efficiency and customer-centric product offerings are becoming key differentiators. As the competition intensifies, firms like Tala are positioning themselves to offer more tailored, tech-driven financial solutions for Kenya’s evolving digital economy.
