NAIROBI, Kenya, October 16 – The National Assembly’s Finance and National Planning Committee has moved to review Buy Now Pay Later (BNPL) services following complaints from customers over alleged exploitation and debt recovery practices.
The committee, chaired by Molo MP Kuria Kimani, plans to question firms on their licensing, loan terms, customer onboarding and procedures for recovering assets from borrowers who default.
Kimani warned that companies invited to appear before the committee must honour the summons, saying lawmakers could invoke Standing Order 191 against those who fail to attend.
“The Committee is in receipt of several complaints from victims of exploitation,” Kimani said, adding that firms would be required to explain how they comply with consumer protection rules.
Mogo Auto Limited, which had been invited to meet the committee, did not attend and requested that the meeting be rescheduled, according to the committee.
Lawmakers will also examine how BNPL firms handle customer accounts, payment records, arrears notices, repossession of assets and the sale of recovered property. They will seek details on how proceeds from asset sales are applied to outstanding loans.
The committee is also expected to meet the Central Bank of Kenya (CBK) to assess the regulation of the sector and establish whether firms are complying with existing requirements.
The review will cover customer complaints, dispute resolution and the conduct of agents and third-party service providers, with MPs seeking possible changes to strengthen consumer protection.
