The Boda-Boda Safety Association of Kenya has urged Parliament to ensure their representation in the ongoing investigation into the regulation of the Buy-Now-Pay-Later (BNPL) credit sector.
Their chairman, Kevin Mubadi, voiced apprehension over the exclusion of their association from consultations, expressing concerns about the representation provided by a rival association.
In a letter addressed to the Finance and National Planning Departmental Committee, Mubadi emphasized the importance of engaging the legally registered association responsible for Boda-Boda affairs in the country, which he leads.
“We are deeply concerned that the parliamentary probe has been initiated without consultation with the legally registered association that handles Boda-Boda issues in the country, which I lead,” Mubadi said.
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He lamented the reported engagement of individuals claiming to represent the National Boda-Boda leadership, which has caused widespread discontent among Boda-Boda leaders across all 47 counties due to what he termed as clear misrepresentation.
"It is disheartening to learn from media reports that the finance committee has met with individuals claiming to be the National Boda-Boda leadership, causing widespread discontent among the Boda-Boda leadership across 47 counties due to clear misrepresentation," he added.
Mubadi underscored the pressing issue of predatory lending practices targeting Boda-Boda operators, signalling it as a primary concern the association seeks to address through their inclusion in the parliamentary probe.
The call for inclusion comes in the wake of concerns raised by Kigumo Member of Parliament Joseph Munyoro in February regarding what he described as the exploitative nature of the BNPL system for Boda-Boda riders in the country.
Munyoro highlighted the risk faced by riders, asserting that they could suffer significant losses as a result of their motorcycles being impounded by lending agencies.
"The buy-now-pay-later model has become a nightmare to hundreds of jobless youths," Munyoro stated, condemning the system for its deceptive practices promising lower down payments and easy instalments, only to reveal hidden fees, exorbitant interest rates, and aggressive debt collection tactics.
The Boda-Boda Safety Association's petition seeks to ensure that the voices of Boda-Boda operators are heard and their interests adequately represented in the ongoing investigation into BNPL regulations.
With concerns mounting over the welfare of Boda-Boda riders amidst allegations of exploitative lending practices, the outcome of this probe holds significant implications for the future of the industry and the livelihoods of its participants.