Boda boda riders could get relief on their loans after the National Assembly began investigations into alleged exploitation by lenders, including claims of excessive interest rates, hidden charges and aggressive recovery practices.

🇰🇪 Breaking It Down

The National Assembly on Tuesday, August 18, referred a petition to the Public Petitions Committee seeking an investigation into lending and asset-financing practices targeting motorcycle riders across the country.

Presented by the Kenya Boda Boda Riders and Owners Association, the riders raised concerns over the terms offered to riders seeking financing to acquire motorcycles.

According to the petition, some riders have allegedly made repayments exceeding the value of their motorcycles without ultimately acquiring ownership of the assets.

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In some instances, the riders alleged that their motorcycles are sometimes repossessed when they default on payments, leaving them with financial difficulties.

"The Petitioner alleges that the company imposes excessively high interest rates and other charges , exposing borrowers to financial hardship and exploitation," stated NA Speaker Moses Wetangula while reading the petition on Tuesday.

Lawmakers called for firm action against lenders found to be exploiting the riders, noting that they should be stamped out, firmly regulated, and even subject to possible deregistration when found to be operating outside the law. Following the petition, Wetang'ula directed the committee to establish whether the lending companies are properly licensed and regulated by the Central Bank of Kenya.

"What you probably should check and inform the House is whether the alleged companies are licensed by the Central Bank of Kenya and, if they are, whether the Central Bank regulates them," Wetang'ula said.

The Public Petitions Committee is now expected to scrutinise the allegations and establish whether the lenders are operating within the applicable legal and regulatory framework.

If discrepancies and exploitation claims are confirmed, the MPs are expected to provide a law regulating the firms, offering relief to Kenyans who depend on the motorcycles for their daily living.

📰 Source: Kenyans.co.ke