The parliamentary Finance Committee is set to question Buy Now, Pay Later (BNPL) firms over growing concerns about consumer exploitation, lending practices and inadequate safeguards for borrowers.
The committee, chaired by Molo MP Kuria Kimani, will examine how the firms operate, including their licensing requirements, loan terms, debt recovery procedures and asset repossession practices.
Lawmakers are also expected to scrutinise how the companies handle consumer complaints as Parliament reviews regulations governing the sector in collaboration with the Central Bank of Kenya (CBK).
The committee has raised concerns over the failure of Mogo Auto Limited to attend a scheduled meeting, with the company reportedly requesting that the session be rescheduled.
Kuria has warned that firms that fail to honour parliamentary invitations could face action under Standing Order 191, signalling a tougher approach towards companies operating in the digital credit and asset-financing space.
The probe comes amid concerns over whether consumers are adequately protected from potentially unfavourable loan conditions, aggressive debt recovery practices and repossession of financed assets.
The lawmakers’ review is expected to assess whether the existing regulatory framework sufficiently protects borrowers while ensuring accountability among BNPL providers.
The outcome could shape future regulations governing Buy Now, Pay Later services in Kenya, particularly on transparency, responsible lending and the protection of consumer rights.
