MPs summon boda boda loan firms over theft, repossession of bikes
Motorcycles belonging to boda boda operators parked outside Nyayo Stadium in Nairobi in July 2022.
What you need to know:
- The NTSA will be required to shed light on the ownership status of the motorcycles.
The MPs were shocked by the stories told by motorcycle owners of theft or repossession of their properties.
Parliament has summoned five firms that sell motorcycles to boda boda operators on credit after it emerged that they charged up to Sh571,000 for each bike.
The National Assembly’s Finance and National Planning Committee says it will also question officials from the National Transport Safety Authority (NTSA) and the Insurance Regulatory Authority (IRA) over the repossession of motorcycles whose owners were almost clearing their loans or had just started repayments. The committee wants Watu Credit Limited, Mogo Motorcycles Kenya, JoyInc Group, 15 Minutes, and My Boda to appear before it next week.
The NTSA will be required to shed light on the ownership status of the motorcycles and how the log books changed hands while IRA will explain insurance compensation processes.
The committee that is chaired by Molo MP Kuria Kimani is inquiring into a public petition filed by Kigumo MP Joseph Munyoro on behalf of the boda boda operators. The MPs were shocked by the stories told by motorcycle owners of theft or repossession of their properties.
One of them narrated how his motorcycle was stolen after paying Sh178,000 to Watu Credit Limited. He said the firm demanded a further Sh121, 000 for replacement of the stolen motorcycle and later said he had an outstanding balance of Sh178,000, bringing the total cost to Sh571,000.
Mr Gideon Ng’eno, who guaranteed a loan for a relative at 15 Minutes Ltd, recounted how the motorcycle was repossessed after the owner decided to travel upcountry with his wife and child.
He said the family member, whom he identified as a Mr Kevin Rotich, was intercepted at Zambezi area, the machine confiscated and the family left stranded on the road. Mr Sambai said they were not informed that the motorcycle had been limited to operate within Nairobi and not be ridden beyond Kikuyu, Thika and Kitengela towns.
“It is harrowing to hear that someone paid Sh570,0000 for one bike and has never received a logbook. What kind of business is this?” Mr Kimani asked.
Mr Charles Gichira, the chairperson of the Kenya Boda Boda Association said his members had suffered at the hands of the companies.
He said some had been killed, their bikes stolen barely days to clearance of the loans or months after taking full possession.
Mr 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. The motorcycle was later stolen outside his house.
“When I called Mogo, they said I was no longer their client yet they still possessed my logbook,” he said. 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 take very long to respond to distress calls on the emergency line they have given us. We want your help,” one of them said.
Mr Kimani and Mr Munyoro assured the boda boda operators that the implicated firms will be held to account and will compensate them for their losses.
