Digital lender Tala has laid off 28 staff from its buyer operations staff, citing a decreased workload as a consequence of fewer mortgage defaults and a drop in buyer assist queries. In an inner memo seen by TechCabal, the corporate stated the layoffs have been necessitated by a shift in how clients repay their loans.
An inner memo from February 2025 initially outlined plans to chop 55 roles throughout Tala’s restoration and customer support groups, citing operational shifts and effectivity measures. That determine was later revised to twenty-eight in April as the corporate reassessed its restructuring plan.
“Upon additional evaluation , the corporate lastly declared redundant 28 positions, primarily within the customer support and collections division, in March 2025. 28 is the ultimate quantity; there won’t be one other spherical of redundancies,” Tala advised TechCabal in an e mail.
“With Tala clients efficiently selecting and managing their mortgage reimbursement timelines in response to their earnings cycles, 28 positions within the buyer operations staff have been declared redundant,” Tala stated within the memo.
Tala stated the layoff would have an effect on 3% of its workforce, suggesting the corporate employs practically 1,000 individuals.
The lender stated it might honour all dues for affected employees, together with their closing wage, one month’s pay in lieu of discover, a severance package deal of at the least 15 days per 12 months labored, and unused go away. Staff may also obtain a one-time ex gratia cost and certificates of service.
The layoffs trace at shifts in borrower behaviour. In Kenya, most digital loans cowl day-to-day bills reasonably than enterprise or funding wants. With the financial system underneath stress, many shoppers could borrow much less or keep away from new debt altogether.
On the identical time, the digital lending area has grown more and more crowded. For standalone lenders like Tala, the problem is attracting customers and competing with M-Pesa-linked companies like M-Shwari, Fuliza, and KCB-Mpesa, which provide seamless integration and model belief.
As of 2023, M-Shwari (34%), Fuliza (25%), and KCB M-PESA (15%) led the Kenyan digital lending area. Tala held a 13% market share, simply forward of Department at 9%.
