NAIROBI, Kenya, Aug 21 – The Kenya Bodaboda Riders and Owners Association has requested the National Assembly to investigate the alleged unfair lending and assets financing practices by Mogo Auto Limited following complaints.
The petition, submitted by the association’s National Executive Chairperson Charles Gichira, raises concerns over interest rates, loan charges, asset repossession and the handling of financed motorcycles.
“I hereby commit the Petition to the Public Petitions Committee for consideration pursuant to Standing Order 208A,” National Assembly Speaker Moses Wetang’ula said.
The association alleges that some Mogo Auto borrowers have faced high interest rates and additional charges, inadequate disclosure of loan terms and repayment obligations, and difficulties obtaining ownership documents for motorcycles despite making substantial repayments.
The petition also raises concerns over the collection and handling of customers’ personal data, tracking devices fitted on financed motorcycles, insurance claims and the treatment of borrowers after default.
The association wants Parliament to examine Mogo Auto’s compliance with the regulatory framework governing lending and asset financing, including interest rates and charges administered under the Central Bank of Kenya framework.
It alleges that high interest rates and additional charges have contributed to financial difficulties among borrowers, while inadequate disclosure of loan terms has affected their ability to make informed decisions.
The petition further claims that some borrowers have not received logbooks despite making substantial repayments towards financed motorcycles.
It also alleges that recovery measures against borrowers who default are unfair, intimidating and oppressive.
On data protection, the association wants Parliament to examine how Mogo Auto collects, processes, stores and shares customers’ personal information in relation to the Data Protection Act, 2019.
It is also seeking scrutiny of tracking devices installed on financed motorcycles and procedures for handling insurance claims and compensation following theft, loss or accidents.
The petition alleges that some borrowers have made repayments exceeding the value of the motorcycles financed but have not ultimately acquired ownership of the assets.
It further claims that motorcycles are repossessed immediately after default, while some stolen motorcycles fitted with tracking devices are not recovered.
The association also alleges that some borrowers continue to be pursued for repayment after insurance compensation has been paid for stolen assets, with some subsequently facing adverse credit listings.
Gichira said the association had previously attempted to have the grievances addressed, including through engagement with the National Assembly’s Departmental Committee on Finance and National Planning.
However, the petition alleges that Mogo Auto failed to attend committee sittings convened to consider the complaints.
The association is asking Parliament to investigate Mogo Auto’s operations and determine whether the company complies with laws and regulations governing lending and asset financing.
It also wants the National Assembly to recommend legislative, regulatory and administrative measures to protect bodaboda riders and other borrowers from what it describes as exploitation, intimidation and unfair business practices.
Wetang’ula said Article 119 of the Constitution gives every person the right to petition Parliament on matters within its authority.
He said the petition had been committed to the Public Petitions Committee in accordance with Standing Order 208A.
The committee is required to consider the petition and report its findings to the National Assembly and the petitioner under Standing Order 227(2).
