Digital lender Tala has laid off 28 employees from its customer operations team, citing a reduced workload due to fewer loan defaults and a drop in customer support queries. In an internal memo seen by TechCabal, the company said the layoffs were necessitated by a shift in how customers repay their loans.
An internal memo from February 2025 initially outlined plans to cut 55 roles across Tala’s recovery and customer service teams, citing operational shifts and efficiency measures. That figure was later revised to 28 in April as the company reassessed its restructuring plan.
“With Tala customers successfully choosing and managing their loan repayment timelines according to their income cycles, 28 positions in the customer operations team were declared redundant,” Tala said in the memo.
Tala said the layoff would affect 3% of its workforce, suggesting the company employs nearly 1,000 people.
The lender said it would honour all dues for affected staff, including their final salary, one month’s pay in lieu of notice, a severance package of at least 15 days per year worked, and unused leave. Employees will also receive a one-time ex gratia payment and certificates of service.
The layoffs hint at shifts in borrower behaviour. In Kenya, most digital loans cover day-to-day expenses rather than business or investment needs. With the economy under pressure, many consumers may borrow less or avoid new debt altogether.
At the same time, the digital lending space has grown increasingly crowded. For standalone lenders like Tala, the challenge is attracting users and competing with M-Pesa-linked services like M-Shwari, Fuliza, and KCB-Mpesa, which offer seamless integration and brand trust.
As of 2023, M-Shwari (34%), Fuliza (25%), and KCB M-PESA (15%) led the Kenyan digital lending space. Tala held a 13% market share, just ahead of Branch at 9%.
Tala did not immediately respond to a request for comment.
