MPs to probe Mogo Auto over alleged unfair lending practices
The petition, submitted by the association's National Executive Chairperson Charles Gichira, raises concerns over interest rates, loan charges, asset repossession and the handling of financed motorcycles.
The Kenya Bodaboda Riders and Owners Association has petitioned the National Assembly to investigate Mogo Auto Limited over allegations of unfair lending and asset financing practices. National Assembly Speaker Moses Wetang'ula has committed the petition to the Public Petitions Committee for consideration. The association claims that some borrowers have faced high interest rates, additional charges, inadequate disclosure of loan terms, and difficulties obtaining ownership documents for financed motorcycles.
They also allege that recovery measures against defaulters are unfair and oppressive. The association seeks Parliament to examine Mogo Auto's compliance with lending and asset financing regulations, particularly interest rates and charges under the Central Bank of Kenya framework. They want Parliament to scrutinize the collection and handling of customers' personal data, tracking devices on financed motorcycles, insurance claims, and the treatment of borrowers post-default.
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