Rédaction Africa Links 24 with CORRESPONDENT
Published on 2024-04-12 12:52:12
The National Assembly’s Departmental Committee on Finance and National Planning in Kenya is considering enacting regulations to govern the operations of Buy-Now-Pay-Later (BNPL) credit providers. This decision comes after concerns were raised in the House regarding the exploitation of boda boda operators by lenders.
The issue was brought to the Committee’s attention by Kigumo lawmaker and Committee Member Joseph Munyoro in February 2024. Munyoro sought a statement from the Committee Chairperson on the measures and mechanisms the government has in place to regulate BNPL providers in the country and address rogue lending institutions violating consumers’ rights.
During a meeting with the Central Bank of Kenya Governor, the Committee engaged with members of the Kenya Boda Boda Association, led by the National Executive Chairman Charles Gichira. The association represents over 2 million operators across the county and highlighted the challenges faced by boda boda operators who have used lending facilities.
The operators expressed concerns about being lured into deceptive deals by lenders promising low-down payments and easy installments. Many operators have suffered losses as their motorcycles were impounded even with minimal outstanding loans. The lenders have taken advantage of vulnerable operators, turning their dreams of owning a motorbike into a nightmare.
Faith Asiba, the association Chairlady, raised concerns about the increase in motorcycle theft cases when loanees are close to completing their payments. There are suspicions of collusion between those responsible for the disappearances and the lenders. The operators called for transparency and accountability from lending companies involved in exploitation.
Munyoro urged the Committee to establish a regulatory framework to protect operators from exploitative practices that border on criminality. He called for investigations into the suspicious incidents of motorcycle losses just before payments were completed.
Committee Chairperson Kuria Kimani assured the operators that the Committee would investigate the matter thoroughly. They plan to place advertisements in newspapers to encourage affected operators to come forward with their complaints. Additionally, the Committee will engage with the Competition Authority of Kenya and the Insurance Regulatory Authority to strengthen regulations governing lenders.
The boda boda operators’ plight has shed light on the need for stricter regulations to prevent exploitation in the BNPL sector. The Committee is committed to addressing these challenges and ensuring the welfare of operators in the industry. Collaborative efforts with relevant authorities will help create a fair and transparent system that empowers operators and protects their rights.
Read the original article on Africa News 24
