Regulatory certainty will unlock potential of asset finance

Clearer lending rules could protect borrowers and unlock Kenya's asset finance potential. [iStockphoto]

The recent petition to the National Assembly by the Kenya Boda Boda Riders and Owners Association concerning the lending and asset financing practices of Mogo Auto Limited highlights the continued challenges posed by Kenya’s hazy regulation of Non-Deposit-Taking Credit Providers (NDTCPs). The petition, which was on the floor of the House on August 16, 2026, closely rhymes with a petition by the boda boda sector considered by the House in May 2024, which raised similar concerns.

The petitions raise several pertinent questions. These include the interest rates charged and the disclosure of facility terms. They also question the associated charges payable under the agreements. Further concerns relate to the protection of data collected by tracking devices, the distribution of insurance proceeds in the event of loss or accidents, and the recovery practices adopted by asset finance companies.