Migori: Growing concern over spike in number of fraudulent lending companies in Uriri
A section of residents have expressed concern over the rising number of lending companies in Uriri, Migori County.
This comes amid reports of fraudulent activities targeting farmers and small traders.
These issues were highlighted during a meeting held at North Kanyamkago Ward, Uriri Sub-County, where discussions focused on new farming methods, crop varieties, and the availability of markets.
Locals shared accounts of being scammed by individuals posing as farm input dealers. These scammers, they said, claim to offer services in exchange for a registration fee.
"They come dressed in uniforms, mention well-known farming companies, and ask for a registration fee of Ksh. 2,000," said one of the attendees. "In addition to the registration fee, they demand more money depending on the service the farmer or client requires," another added.
Once the payment is made, the scammers disappear, and their phone numbers become unreachable, leaving victims stranded and frustrated.
"They appear trustworthy, teaching you various farming techniques... only to vanish. They are just criminals looking to harvest what they didn't plant," added another farmer.
Residents have called on authorities to provide entrepreneurship education to small traders before they engage with digital money lenders.
This, they believe, would help avoid misunderstandings and disputes between borrowers and lenders, which often lead to quarrels.
Samwel Keboye, Chairperson of the Isebania Business Association, emphasized the need for intensive education for traders.
He noted that many lenders do not adhere to proper procedures, often contacting borrowers prematurely and causing significant disruptions.
"They make the working environment unbearable. You can receive over 60 calls a day from different numbers with the same claim. I know this because I once borrowed," Keboye said.
Additionally, some residents pointed out that many digital lenders target rural populations who are less informed about loan agreements.
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