MPs summon Buy Now Pay Later firms over consumer complaints

Nairobi, Kenya - The National Assembly’s Finance and National Planning Committee has decided to investigate Buy Now Pay Later (BNPL) services following consumer complaints of exploitation and aggressive debt recovery tactics. The panel, led by Molo MP Kuria Kimani, intends to interrogate firms on licensing, loan conditions, customer enrollment, and methods for seizing assets from borrowers unable to repay.

Kimani cautioned that companies summoned to testify before the committee must comply, threatening to invoke Standing Order 191 for non-attendance. "The Committee has received numerous allegations of consumer exploitation," Kimani stated, emphasizing that firms would need to clarify how they abide by consumer protection regulations.

Mogo Auto Limited, a BNPL firm invited to the meeting, did not show up and requested the date be changed, as reported by the committee. The lawmakers will also scrutinize how BNPL firms manage customer accounts, payment histories, overdue notices, asset repossession, and the proceeds generated from selling repossessed items. They will request information on how these sales proceeds are allocated to outstanding debts.

The committee is also set to meet the Central Bank of Kenya (CBK) to evaluate the sector's regulation and determine if firms are adhering to current requirements.

The review will include customer complaints, dispute resolution procedures, and the actions of agents and third-party service providers, with MPs looking to implement possible enhancements to reinforce consumer safeguards.