CBK says five auto financing companies operating illegally

Central Bank of Kenya Governor Kamau Thugge when he appeared before the Senate Finance and Budget Committee at Parliament on December 4, 2023. [Boniface Okendo, Standard]

The Central Bank of Kenya (CBK) has declared that five dominant companies providing vehicle, motorcycle and asset financing to low-income individuals across the country are operating without authorisation.

The shocking revelation is likely to shine the spotlight on regulators and the lack of an effective customer protection framework in the country. The five lending firms have expanded their operations nationwide backed by global venture capital and have earned millions of shillings in profits from lending to low-income borrowers in return.