Our CEO, Andris Kaneps, and Kenya Country Manager, Erick Massawe, were invited to the Departmental Committee on Finance and National Planning to present our views on the future of Buy Now Pay Later (BNPL) services in Kenya.
Over the past nine years, our company has consistently made substantial contributions to the Kenyan economy and the welfare of its citizens. These contributions, which we are proud of, include:
- Contributing over 5 billion KES in taxes, directly supporting Kenya’s fiscal well-being.
- Disbursing over 51,000 logbooks in the last year.
- Providing over 500,000 loans for mobility assets.
- Facilitating 800,000 loans for smart connected devices.
- Directly employing 1,500 full-time employees.
- Creating over 600,000 business opportunities and indirect employment across Kenya.
BNPL can be a powerful tool for financial inclusion, empowering Kenyans with greater control over their finances. We also recognize the importance of responsible regulation to prevent over-borrowing and ensure fair practices for consumers and lenders. With effective regulation, BNPL can foster responsible borrowing and financial literacy, while in the boda boda sector, it can promote safety, professionalism, and fair competition.
The current lack of adequate regulation has left the sector vulnerable. The absence of proper licensing and insurance requirements has provided an avenue for criminal activities involving boda bodas. Furthermore, inadequate training and safety standards have led to a troubling increase in accidents.
The unregulated boda boda sector poses significant economic, criminal, and health risks to Kenya. The increase in accidents and injuries leads to substantial productivity losses, directly undermining economic growth. Moreover, the association of boda bodas with rising crime rates tarnishes the investment climate, discouraging foreign investment and hindering economic development. The time to address these challenges through immediate and comprehensive regulatory measures is now.
We are not just advocating for responsible regulation, but we are also ready to collaborate with the government and other stakeholders to develop and implement effective regulatory measures. Our commitment is to foster a safer, more inclusive financial landscape that empowers Kenyans and drives sustainable economic growth. Together, we can harness the potential of BNPL and the boda boda sector to build a brighter future for Kenya.
