A Senate committee has cleared Watu Credit Limited over alleged complaints of exploitation and suspicious loss of motorbikes sold to boda boda operators.
Watu had been summoned by the Senate Committee on Trade, Industrialisation and Tourism following a statement made by Nandi Senator, Samson Cherargey.
The Senator had cast doubts on the activities of the company following numerous complaints from the firm’s customers, who petitioned the Senate over rampant theft of motorcycles purchased from the company.
The Senate committee requested the credit firm to provide submissions on the allegations of malpractices and exploitation with regard to its way of conducting business in Kenya.
On November 16, Watu attended the senate committee meeting, represented by its leadership team, CEO Andris Kaneps, country manager (Kenya) Erick Massawe and HoD Legal Rose Osiemo.
Following the firm’s submissions, the committee said they were sufficient and has decided to close the case.
“Vide your letter dated 23rd November, 2023, the Committee received your response to the information sought. At its Sitting held on 30th November, 2023, the Committee observed that the response was sufficient and resolved to conclude and close the matter,” reads a letter from the clerk of Senate Jeremiah Nyegenye.
When they appeared before the committee, CEO Kaneps absolved his firm of the allegations, which he attributed to surging cases of motorcycle thefts across the country.
“Motorcycle theft is a rampant problem countrywide and considering that 60 to 70 per cent 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 a special police unit to rein in cases of motorcycle theft across the country.
The CEO was however pressed on how Watu Credit repossesses motorcycles in the event of customer defaults or delays.
"I am here because I have this 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 emphasising that Watu Credit typically offers its customers adequate time and various choices to make their loan repayments, before resorting to repossession.
