The National Assembly has tasked the Public Petitions Committee with investigating allegations of unfair lending and asset-financing practices by Mogo Auto Limited after complaints from boda boda riders across the country.
The petition, presented by Kenya Bodaboda Riders and Owners Association National Executive Chairperson Charles Gichira on August 18, accuses the lender of imposing high interest rates and extra charges, failing to disclose loan terms adequately, and using aggressive debt-recovery methods.
It also seeks to establish whether Mogo Auto operates within the legal and regulatory framework governing lending and asset financing, including requirements overseen by the Central Bank of Kenya.
Boda Boda Riders Accuse Mogo Auto of Exploitative Lending Practices
According to the petition, some borrowers have allegedly repaid more than the value of their motorcycles but still have not acquired ownership of the assets.
The riders further allege that motorcycles are repossessed soon after borrowers default, while stolen motorcycles fitted with tracking devices are allegedly not recovered.
They also claim some borrowers continue to face repayment demands even after insurance companies have compensated lenders for stolen or damaged assets, with some subsequently receiving adverse credit listings.
Concerns were also raised about the handling of customers’ personal data, the effectiveness of tracking devices, and procedures for processing insurance claims and compensation following theft, loss, or accidents.
“The Petitioner alleges that the company imposes excessively high interest rates and other charges, exposing borrowers to financial hardship and exploitation,” the Speaker told the House.
The petitioners said previous attempts to resolve the grievances through the Departmental Committee on Finance and National Planning had failed, alleging that Mogo Auto did not appear before committee sittings convened to address the complaints.
Also Read: Tough Times for Boda Bodas as Company Puts Over Repossessed Motorcycles Up for Sale
Majority Leader Kimani Ichung’wah called for firm action against lenders accused of exploiting boda boda riders.
“Predatory lenders who have taken advantage of our boda boda riders through exploitative lending practices must be stamped out, firmly regulated, and, where they operate outside the law, deregistered,” he said.
Speaker Moses Wetang’ula directed the committee to establish whether Mogo Auto, Watu Credit and other similar firms are licensed and regulated by the Central Bank of Kenya.
“What you probably should check and inform the House is whether Watu Credit, Mogo and the other companies are licensed by the Central Bank of Kenya and, if they are, whether the Central Bank regulates them,” he said.
The legislators said the investigating committee should ensure justice for affected riders while widening its inquiry to other lenders accused of using exploitative lending practices.
In 2025, the National Assembly’s Finance and National Planning Committee also summoned five major motorcycle asset financing firms to address complaints from borrowers.
The companies, Watu Credit Limited, MOGO Motorcycles Kenya, JoyInc Group, 15 Minutes and My Boda, faced allegations ranging from exploitative loan terms and questionable repossessions to delays in transferring motorcycle ownership to customers.
Also Read: Government Orders Ban on Antibiotic Deliveries via Boda Bodas and Online Platforms
MOGO Auction
The investigation follows MOGO Auto Limited’s invitation to the public to bid on dozens of repossessed motorcycles, tuk-tuks, and several motor vehicles in a nationwide public auction.
On August 7, the company announced that the sale would be conducted on an “as is, where is” basis, and encouraged prospective buyers to inspect the vehicles before submitting bids.
Among the motorcycles listed for sale were TVS HLX 125, Boxer BM 100, Boxer BM 150 UG, Honda Ace 125 ES, Skygo SG 125, Ranger Sanya RY 150-18, Sonlink SL 125, Haojin HJ 125 and Spiro Ekon 450. The auction also featured Piaggio Open Tourer 395cc three-wheelers.
The list further included Bajaj Maxima Z Petrol 236cc tuk-tuks and several motor vehicles, including a 2011 Suzuki Alto and a 2011 Honda Stream.
Follow our WhatsApp Channel and X Account for real-time news updates.
