The National Assembly Finance and National Planning Committee has set November 5 to hear from asset finance companies after receiving 110 complaints that borrowers are being charged interest exceeding the original loan amount.
Committee chairperson Kimani Kuria said the petitions, filed by several boda boda riders, allege that some customers have repaid two to four times the principal and that many lenders failed to disclose loan terms, with some borrowers paying “even three or four times the loan amount.”
The inquiry follows the Business Laws (Amendment) Act, 2024, which brought non-deposit-taking credit providers under Central Bank of Kenya supervision and introduced the in-duplum rule limiting recoverable interest on qualifying non-performing loans to the outstanding principal.
Kuria warned that lenders who ignore the November invitation could be summoned under Standing Order 191, and he pledged that the committee will table a report to the House to enable appropriate legal or regulatory action.
Asset financing is a common source of equipment for small enterprises and informal workers such as motorcycle operators, making the cost and terms of credit directly relevant to earnings and repayment capacity. In July 2026, the Competition Authority of Kenya highlighted gaps in the legal framework for digital lenders that expose borrowers to hidden fees, predatory lending and coercive debt recovery.
“No lender should be allowed in Kenya to lend beyond or outside the legal framework,” Kuria said, underscoring the committee’s intent to enforce the new regulatory standards.
