Members of Parliament have launched a probe into allegations of exploitation by five motorcycle loan firms targeting boda boda operators.
The National Assembly’s Finance and National Planning Committee has summoned officials from Watu Credit Limited, Mogo Motorcycles Kenya, JoyInc Group, 15 Minutes, and My Boda to address concerns over exorbitant charges and unfair repossession practices.
This investigation follows a public petition filed by Kigumo MP Joseph Munyoro on behalf of boda boda operators, revealing distressing accounts of theft, repossession, and excessive fees faced by boda boda operators across the country.
One operator recounted how his motorcycle was stolen after he had paid from one of the asset finances entities operating under the ???????????? ???????????? ???????????? ???????????????????? model Ksh178,000, only to be told that he owed an additional Sh121,000 for a replacement.
He was later informed that he had an outstanding balance of Sh178,000, bringing the total cost to a staggering Sh571,000.
“It is harrowing to hear that someone paid Ksh570,0000 for one bike and has never received a logbook. What kind of business is this?” Molo MP Kuria Kimani, chair of the committee.
Also Read: Win for BodaBoda Riders as 2 Firms Seal Deal to Offer Cheap Loans
Another operator, Gideon Ng’eno, who had guaranteed a loan for a relative from one finance entity said the motorcycle was repossessed after the owner traveled upcountry with his family.
He described how his family member was stopped at the Zambezi area, where authorities confiscated the motorcycle, leaving the family stranded on the roadside.
Ng’eno claimed they were not informed that the motorcycle was limited to operate only within Nairobi and not beyond Kikuyu, Thika, and Kitengela.
NTSA To Clarify on Ownership Status
Additionally, the committee will also question officials from the National Transport Safety Authority (NTSA) and the Insurance Regulatory Authority (IRA) about the ownership status of the motorcycles and the insurance compensation processes.
Charles Gichira, the chairperson of the Kenya Boda Boda Association, expressed the suffering of his members at the hands of the lending companies, with some having their bikes stolen just days before clearing their loans or months after taking full possession.
John Toto, an operator from Kajiado Central Sub County who bought a bike from Mogo Motorcycles, said the company withheld his logbook even after he had repaid the loan in full.
“When I called Mogo, they said I was no longer their client, yet they still possessed my logbook,” he lamented.
He later revealed that the same motorcycle was later stolen outside his house, raising questions over alleged foul play.
Lack of Urgency in Addressing Concerns
The boda boda operators accused the companies and the police of doing little to recover their stolen motorcycles, even when the tracking devices clearly indicated where they had been taken.
They also complained about the slow response from the emergency lines provided by the companies.
Also Read: Museveni Honors Boda Boda Rider for Capturing Suspected Killers
“They take very long to respond to distress calls on the emergency line they have given us. We want your help,” one of them said.
The Lawmakers have pledged to hold the implicated firms accountable and ensure compensation for affected operators, emphasizing the urgent need for stricter regulations to safeguard boda boda operators and promote fair lending practices in the industry.
Follow our WhatsApp Channel for real-time news updates.
https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C
