Parliament is set to investigate complaints against Mogo Auto Limited over alleged unfair lending and asset financing practices affecting motorists, especially bodaboda riders.
The National Assembly received a petition from the Kenya Bodaboda Riders and Owners Association, which has raised concerns about high interest rates, extra charges, motorcycle repossessions and delays in getting ownership documents.
The petition was referred to the Public Petitions Committee by National Assembly Speaker Moses Wetang’ula under Standing Order 208A.
The association claims that some riders have paid large amounts towards their motorcycles, with some allegedly paying more than the value of the motorcycle without receiving the necessary ownership documents.
It has also complained about the methods used to recover motorcycles from borrowers who fall behind on payments.
According to the association, some riders whose motorcycles were stolen have continued receiving demands for payment even after insurance companies compensated for the loss.
Concerns over riders’ personal data
The bodaboda association has also questioned how Mogo handles borrowers’ personal information and the use of tracking devices fitted on financed motorcycles.
It wants Parliament to establish whether the company’s lending and asset financing practices comply with Kenyan laws, including data protection regulations.
The association is also asking MPs to recommend measures that can better protect motorists and other borrowers from unfair lending practices.
The group says it had previously brought the complaints before Parliament but alleges that Mogo Auto did not attend some committee meetings called to discuss the matter.
The Public Petitions Committee will now examine the complaints before presenting its findings and recommendations to the National Assembly.
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