By Benadeta Mwaura - Reporter
Kenya, June 25, 2026 - Digital lender Tala is set to lay off about 10% of its workforce in Kenya as the company restructures its operations amid shifting market dynamics, increased automation, and changing customer behaviour.
The job cuts come at a time when Kenya's broader private sector is facing growing pressure from slowing demand, rising operating costs, and a cautious business environment that has seen several firms scale back hiring or reduce staff numbers.
Recent private sector surveys have shown employment contractions after more than a year of sustained job growth.
According to reports, the latest restructuring is part of Tala's efforts to streamline operations and improve efficiency as the digital lending industry undergoes rapid technological transformation. The company has increasingly invested in automation and digital tools that have reduced the need for certain operational functions.
The development follows a smaller redundancy exercise undertaken by the lender in 2025, when the company eliminated 28 positions, mainly within its customer service and collections teams. At the time, Tala attributed the decision to declining workloads, improved loan repayment behaviour among customers, and fewer support requests.
Tala, which has operated in Kenya for more than a decade, remains one of the country's leading digital credit providers, serving millions of borrowers through its mobile-based lending platform.
Over the years, the company has positioned itself as a major player in Kenya's fintech ecosystem, leveraging alternative data and technology to extend credit to individuals and small businesses often underserved by traditional banks.
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The planned layoffs come as fintech firms globally face mounting pressure to balance growth ambitions with profitability. Across the technology sector, companies have increasingly turned to automation, artificial intelligence, and operational restructuring to manage costs and improve efficiency.
While digital lenders continue to experience strong demand for credit products, many are reassessing workforce needs as digital platforms become more sophisticated and customer interactions become increasingly automated.
The announcement also highlights broader shifts occurring within Kenya's technology and outsourcing sectors. Several firms have recently announced job cuts, citing changing client requirements, economic uncertainty, and evolving technology-driven business models.
Despite the workforce reduction, Tala is expected to maintain its focus on expanding digital financial services, enhancing customer experience, and developing new lending products as competition within Kenya's fast-growing fintech market intensifies.
The company has not indicated that the restructuring will affect its lending operations or customer services, with management maintaining that the move is intended to position the business for long-term sustainability and future growth.