The National Assembly Finance and National Planning Committee will summon asset finance companies and Buy Now Pay Later (BNPL) providers after receiving a wave of complaints about predatory interest rates and exploitation, with a hearing scheduled for November 5.
Committee chairperson Kimani Kuria said the committee has logged 110 cases alleging lenders charging interest that eclipses the original loan amount, with some borrowers paying two to four times the principal.
“We have continuously, since the start of this inquiry, received numerous other complaints where there is no disclosure of the loan amount, and some customers have paid even three or four times the loan amount,” Kuria said.
He warned that any firm that fails to honour the November 5 invitation could be subject to Standing Order 191, which allows the committee to issue a formal summons.
The probe follows the Business Laws (Amendment) Act, 2024 that placed previously unregulated non-deposit-taking credit providers under Central Bank of Kenya oversight and introduced the in-duplum rule limiting recoverable interest on qualifying non-performing loans to the outstanding principal.
Despite the regulatory changes, the committee continues to receive reports of interest charges far exceeding the borrowed sums, inadequate disclosure of loan terms and repossession of financed assets without proper notice.
The committee will also question BNPL firms on licensing, loan terms, customer onboarding, arrears notices, asset repossession and the application of proceeds from asset sales, and plans to meet the Central Bank of Kenya to assess sector compliance.
Mogo Auto Limited, which had been invited to appear, did not attend and asked that the meeting be rescheduled, the committee said.
In July 2026 the Competition Authority of Kenya warned that gaps in the legal framework governing digital lenders leave borrowers vulnerable to hidden fees, predatory lending and coercive debt recovery practices.
“No lender should be allowed in Kenya to lend beyond or outside the legal framework,” Kuria said, adding that the committee intends to complete its inquiry and table a report before the House.
