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High lending rates the reason behind Tala closure in Tanzania

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Tala, one of the popular, fastest, and exploitative Mobile money lender which has been operating in India, Mexico, Tanzania, Philippines and Kenya, is now shutting down its operations in East Africa after making a kill.

Tala company is one of the mobile money lending app companies that are careless with personal data of their clients, lend at exhobitant rates and coerce customers with endless messages, calls and threats to pay back their loans within a short period of time. It is because of these reasons that the government of Tanzania is doing away with it.

“We regret to inform you that Tala is currently not offering loans in Tanzania. We appreciate the opportunity to serve you, and we wish our loyal customers continued success in your financial journeys,” the company wrote in a statement.

In Tanzania there was no CRB, no threat messages, no reminder messages every week or immediately the cash is credited to your account, it was purely borrowing.

“Tala is no longer offering loans in Tanzania due to legal reasons as imposed by the government…Tanzania is not that country which will allow her citizens to suffer at the expense of few greedy individuals like Tala” revealed a source.

Tala enjoys over 2.5 million customers from Kenya. The company continue to make a kill at the expense of desperate jobless Kenyans who are seeing it as an alternative to make a living.

While Tanzania is shutting Tala down just months after the company got a boost of sh11.5 billion, Kenyans who are the majority users of this lender company continue to deal with the high lending rates, they are left on their own.

It’s time to shut down these mobile money lending apps, they only increase poverty. Some desperate and jobless youths end up paying more than 20k as interest every month, that’s too much burden on them. Shut down Tala in Kenya too.

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