The National Assembly Finance and National Planning Committee detailed plans to investigate companies offering Buy Now Pay Later (BNPL) services.
In a notice dated Saturday, April 27, it was revealed that the committee would be focusing on the operation of the companies following numerous complaints of exploitation of Kenyans.
Particularly, the Committee noted that the probe was informed by complaints reported in the boda boda sector.
A section of boda riders have lamented over the exorbitant interest rates offered by the companies. The companies have also been accused of harassing the riders when seeking loan repayments.
Consequently, the committee revealed that it would be seeking to establish whether the companies are licenced and the legalities of the interest rates offered.
"Now therefore, pursuant to the provisions of Article 95(2) of the Constitution and Standing Order 216 (5) (a), the committee has resolved to conduct a public inquiry on the foregoing allegations and make recommendations to the House.
"The terms of reference include evaluating measures put in place to ensure the interest, fees and penalties charged for BNPL services adhere to existing statutes and consumer protection safeguards," read the notice in part.
It was also noted that it would be seeking to establish the risks of the unregulated sector and the status of defaults in the industry.
"The terms of reference will also review existing regulations governing BNPL services and identify any gaps or areas for
improvement," read the notice in part.
Meanwhile, Kenyans have asked to submit their views on the matter.
"The memoranda may be addressed to the Clerk of the National Assembly, P.O. Box 41842-00100, Nairobi; hand-delivered to the Office of the Clerk of the National Assembly, Main Parliament Buildings, Nairobi; or emailed to cna@parliament.go.ke.
"Kenyans were advised to submit their views on or before Monday, May 13, 2024, at 5 pm," read the notice in part.
