Friday, February 23, 2024
Home > Business > Motor bike creditors slammed for exploiting youths

Motor bike creditors slammed for exploiting youths

Kenya National Private Security Workers Union Secretary General Isaac Andabwa has criticized motorcycle lenders for using dubious hire purchase schemes to exploit unsuspecting customers

He told a press conference at Manyonyi in Lugari Constituency that the schemes through which boda-boda riders pay daily installments to offset the loans were mischievous and meant to disenfranchise the buyers financially.

He said: “I am perturbed by the motorcycle creditors operating in Mwamba and Turbo town. They are making triple profits at the expense of the poor youths whom some cannot even afford a meal for their families because they must remit the creditors’ daily installments.

“I want to categorically state that it is high time we reviewed the terms and conditions of lending motorcycles. We cannot allow unscrupulous business companies to enslave our unemployed youths during these tough economic times.”

Andabwa who unsuccessfully contested for Lugari parliamentary seat in last year’s general elections regretted that paying the creditors’ is now the sole target of most youths owning motorcycles.

“It is regrettable that even if one pays and unfortunately delays to pay on the two or three remaining days the creditors will impound the motorcycle.

“This is unacceptable. We must sit down with the creditors and review the motorbike lending terms and conditions afresh. If not the companies will have to pack and move elsewhere because they are ruining the lives of our youths in Lugari instead of helping them.”Andabwa stated.

He said most youths are now living desperate lives because they cannot meet their daily needs yet they own motorbikes.

He noted that the lenders must find out a way of giving out soft loans and ensuring the borrowers repay but also remain with something to meet the daily needs of their families.

“This is now a social issue. It is not logical that one’s daily work is just to repay a loan and when they go back home in the evening they go with empty hands. After sometime they will become irrelevant even to their families,”Andabwa said.

The hire purchase schemes through which boda-boda riders pay daily installments to own motorcycles have received immense criticism.

Under the arrangement a rider pays a deposit of about Sh15,000 and commits to remit daily installments of as low as Sh350 per day for a an agreed period of months.

The rider only gets to own the motorcycle after making a full payment as the creditor retains the log book.

However after paying for the agreed months the rider will have paid for almost a double price as compared to the normal cash price.

By Melechezedeck Ejakait

Leave a Reply