Senators want committee formed to probe Watu Credit over ‘disappearing’ motorbikes

Members of the Senate's Trade, Industrialization and Tourism Committee have advocated for the formation of a special commission to investigate the activities of digital lender, Watu Credit, across the country.

This follows numerous complaints by Kenyan borrowers who utilize the lender's loan facilities to acquire motorcycles, only to find that just before they complete loan repayments, the bikes vanish under mysterious circumstances.

While endorsing the formation of the committee to probe Watu Credit, Senators wondered why the motorcycles are only stolen when customers are about to clear their loan repayment instalments.

The Senators also demanded that Inspector General of Police Japheth Koome avail himself before the trade committee to shed more light on the disappearances of the motorcycles.

‘’I have more than 300 people willing to testify on this issue, I don’t think this committee will do justice investigating the claims given the short time available, I propose that we form a committee of inquiry to look into this matter,” said Nandi senator Samson Cherargei.

"The Central Bank of Kenya cannot place Watu credit anywhere. It’s just a mongrel; they are not digital lenders, they are not asset financing, who are they? Are they shylocks?"

In response, Watu Credit CEO Andris Kaneps absolved his firm of the allegations whch he attributed to surging cases of motorcycle thefts across the country.

“Motorcycle theft is a rampant problem countrywide and considering that 60-70% of the bicycles are financed by Watu credit any increase in bicycle theft will affect our company and the customers,” he told the senators.

Kaneps further proposed the formation of special police unit to rein in cases of motorcycle theft across the country.

The CEO was however hard pressed on how Watu Credit repossesses motorcycles in the event of customer defaults or delays.  

"I am here because I have these experience in Marsabit County, where motorbikes were reposed by the police and sold by the police after one day, what is the procedure when you are repossessing, can someone appeal?" Marsabit Senator Mohammed Chute posed.

Kaneps replied by emphasizing that Watu Credit typically offers its customers adequate time and various choices make their loan repayments before resorting to repossession.