The National Assembly’s Departmental Committee on Finance and National Planning is taking steps to address concerns surrounding the Buy-Now-Pay-Later (BNPL) credit providers, particularly regarding their impact on boda boda operators. Led by Kuria Kimani, the MP for Molo and committee chair, efforts are underway to enact regulations aimed at safeguarding the interests of boda boda operators from exploitation by unscrupulous lenders.
The committee plans to engage with the Competition Authority of Kenya (CAK) and the Insurance Regulatory Authority (IRA) to develop tighter regulations governing BNPL lenders. BNPL services allow consumers to make purchases and pay for them over time, either through traditional retailers, online platforms, or third-party apps.
Kimani announced plans to publish advertisements in newspapers to encourage affected boda boda operators to come forward and lodge their complaints. Recognizing that not all operators may have access to newspapers, he urged the Association Chairman to disseminate the information widely.
Expressing concern for the plight of boda boda operators, Kimani emphasized the need for investigative agencies to look into instances of motorcycles being impounded just before loan repayment completion, a practice deemed suspicious.
During a meeting with members of the Kenya Boda Boda Association, chaired by Charles Gichira, the committee sought insights into the situation, prompted by reports indicating that nearly half of those utilizing lending facilities were adversely affected. The MPs requested the names of lending companies involved in exploitative practices to allow them to present their case before the committee.
Representatives from the association, claiming to speak on behalf of over two million operators nationwide, lamented that what was initially marketed as a viable path to motorcycle ownership and financial independence has turned into a nightmare. They highlighted cases where operators faced indiscriminate motorcycle impoundment, even with minimal outstanding loan balances, resulting in substantial losses.
