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Watu Credit head of commercial at Chris Rumenda/HANDOUT
Kenya’s Buy Now, Pay Later sector is set for rapid expansion as industry players predict more firms and products will enter the market once regulation to oversee the model is finalised.
The proposed Business Laws (Amendment) Bill 2025, which is currently undergoing public participation, seeks to bring BNPL services under the supervision of the Central Bank of Kenya (CBK).
Stakeholders say this will not only safeguard consumers but also give confidence to new entrants in a space that is still relatively young in Kenya.
“We expect regulations that will come in to protect both the companies and the consumers. With this, we expect to see more firms and products join the market,” said head of commercial at Watu Credit Chris Rumenda, one of the pioneers in the space. BNPL, which allows consumers to access products or services by paying in instalments, has been gaining ground globally and is now being adapted to Kenya’s unique market dynamics.
Watu Credit, for instance, has made inroads by financing motorcycles (commonly known as boda bodas) – a critical livelihood tool for many unemployed youth.
“There are about 2.5 million boda bodas in the country. Many young people, after finishing school and unable to find formal employment, turn to boda bodas as their first job option,” Rumenda noted.
“Our first product was boda boda financing, where riders pay a small daily amount, such as Sh250, instead of raising the full price upfront.”
Beyond motorcycles, BNPL players are now exploring ways to diversify their portfolios.
Rumenda revealed that companies are testing technology-driven solutions to assess credit risk, which would reduce loan approval timelines and make financing more accessible.
The entry of more firms is expected to broaden BNPL offerings beyond motorbikes and phones to include household goods, electronics and other consumer products.
“With regulation, we anticipate faster adoption, more innovation, and a wider range of products in the BNPL model,” Rumenda said.
