The Kenya National Private Security Workers Union (KNPSWU) Secretary General Isaac Andabwa has criticized motorcycle lenders for using dubious hire purchase schemes to exploit unsuspecting youths.
Speaking at Manyonyi in Lugari Constituency, Andabwa said the schemes through which boda-boda riders pay daily installments to own motorcycles are mischievous and shouldn’t be entertained.
“I am perturbed by the motorcycle creditors operating at Mwamba and Turbo trading centers. 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 wondered
Andabwa who unsuccessfully contested for Lugari parliamentary seat last year 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.” stated Andabwa.
He said most youths are now living desperately 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.” He added.
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 or 20,000 and commits to remit daily installments of as low as Sh350 per day for a fixed 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.