MPs Threaten Summons Against Buy Now Pay Later Firms Over Customer Exploitation Complaints

Buy now pay later providers that fail to honour invitations from Parliament could be compelled to appear, the National Assembly’s Finance and National Planning Committee has warned, as it widens a review of consumer protection in motorcycle financing and digital credit.

The committee’s chairperson, Kuria Kimani, said the panel had received several complaints from people who described being exploited by BNPL providers. He warned that firms which do not honour invitations could face the National Assembly’s Standing Order 191, a provision that allows the House to compel attendance.

The warning comes after Mogo Auto Limited failed to attend a scheduled committee meeting. The firm asked for the session to be rescheduled, and the committee has not said whether it has granted that request.

The committee is examining how well existing regulations and consumer protection measures work in motorcycle asset financing and buy now pay later services. Its planned scrutiny covers the financing products firms offer, how customers are onboarded, whether the firms are licensed, and whether they meet Central Bank of Kenya requirements.

Lawmakers also intend to look at how accounts are handled after a loan is issued. That review covers payment reconciliation, the statements customers receive, and how borrowers are told about arrears or changes to their accounts.

Default and recovery practices form another part of the review. The committee plans to examine how defaults are handled, what notices are issued, and how assets are repossessed, valued and disposed of, including what happens to the proceeds.

It will further assess how firms handle complaints, what redress is available, how disputes are escalated, and how agents and third-party providers are supervised. The committee is scheduled to meet the Central Bank of Kenya as part of the review.

The panel has not outlined specific findings against individual firms. It has also not named the BNPL providers other than Mogo Auto, nor given the number of complaints it has received or details of the alleged exploitation. No date has been announced for the planned meeting with BNPL firms.

Stakeholders have raised concerns about how customers are treated in motorcycle asset financing and buy now pay later arrangements. The committee’s review is ongoing.

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