Jijenge Credit Praises Finance Committee’s Inquiry into Exploitative Lending Practices

Peter Macharia Kamau, (Pictured)Managing Director of Jijenge Credit Limited, Kenya’s leading credit-only microfinance, has expressed strong support for the Parliamentary Committee on Finance’s scrutiny of lending companies accused of exploiting boda boda operators.

This investigation, initiated by Kigumo MP Joseph Munyoro in March, aims to address grievances from the sector.

Kamau praised the committee’s efforts, stating,

“The parliamentary committee is doing an excellent job of seeking explanations from lenders and regulatory agencies. This will help professionalize the boda boda sector.”

He noted that Progressive Credit Ltd has demonstrated professionalism, emphasizing that theft and asset disappearance issues, prevalent in motorbikes, require the establishment of a specialized motorbike theft unit akin to the motor vehicle unit at DCI.

Kamau explained that interest rates are risk-based, reflecting the client’s risk profile. He highlighted the importance of the boda boda industry, advocating for a collaborative approach involving private and public agencies, including county governments, to create a regulated, low-risk environment. Such efforts, he believes, will attract more lenders, fostering competition and reducing interest rates.