Cases of rampant scams and exorbitant interest rates imposed by Savings and Credit Cooperative Societies (SACCOs), credit companies and shylocks in our country are becoming a common occurrence. The exploitative practices and unscrupulous behavior of these financial institutions have subjected countless individuals and families to financial distress, perpetuating a cycle of debt and economic vulnerability. Indeed there is a need for innovative and creative approaches to tackle the issues faced by our workforce and the millions of young individuals trapped in a cycle of despair. We need to address the pressing labor crisis that demands contemporary solutions.

The alarming proliferation of over 2.5 million boda boda bikes, with nearly 800,000 in Nairobi alone, raises concerns about the plight of the young people working in this sector. Unfortunately there are deliberate practices by microfinance institutions, SACCOs and shylocks that perpetuate a never-ending cycle of modern day slavery for these riders. The exorbitant deposit of Ksh 15,000 to acquire a boda bodais accompanied by acruel strategy to prevent full ownership or repayment of the Ksh 450,000 price tag. This cycle of permanent repayment breeds poverty and reeks of exploitation. It is crucial to reassess how this sector is managed, specifically addressing the interest rates that burden boda boda operators and perpetuate their economic vulnerability. Sign this petition to ensure micro lending institutions stop exploiting Kenyans.

Therefore this petition demands:

1. Laws and Regulations. The National Assembly to enact a law governing shylocks and SACCOs including their registration and operations in the country. The National Assembly to amend the Banking Act to cover these Microfinance Institutions as well.

2. Avoid Double Registration. We implore the National Transport and Safety Authority (NTSA) to undertake a thorough investigation into cases involving outstanding debts and to establish effective measures to engage with the registered owners of bikes/vehicles prior to any alteration in ownership status

3. Collaborate With Regulatory Bodies. We encourage SACCOS, credit companies, and shylocks to work closely with regulatory bodies, such as The Central Bank of Kenya and The SACCO Societies Regulatory Authority (SASRA), to establish robust guidelines and regulations. Strengthening the regulatory framework will help deter fraudulent activities, protect consumers' rights, and create a more stable and trustworthy financial system.

4. Cease Scamming Practices. We demand that all financial institutions, including SACCOS, credit companies, and shylocks, operate with integrity and transparency. Unscrupulous practices, such as hidden charges, unfair penalties, and misleading loan terms, must be eradicated. We call for strict regulation and oversight by The Central Bank of Kenya in collaboration with The SACCO Societies Regulatory Authority (SASRA) to ensure that these institutions adhere to ethical standards, protecting consumers from scams and fraudulent activities. 

5. Reduce High Interest Rates. The exorbitant interest rates charged by these financial institutions have burdened borrowers, often leading to a never-ending debt cycle. We implore The Central Bank of Kenya to revise the interest rate structures of micro finance institutions to make them fair and affordable. We urge them to consider the financial well-being of borrowers and adopt interest rates that promote economic growth and stability.

6. Enhance Consumer Protection. We appeal to The Competition Authority of Kenya (CAK) to ensure consumer protection and financial education. It is essential for micro finance institutions to provide clear and concise information about loan terms, repayment schedules, and any associated costs. Additionally, we call for improved mechanisms by The SACCO Societies Regulatory Authority (SASRA) in addressing customer grievances and ensure  swift resolution processes.

Sign this petition to ensure micro lending institutions stop exploiting Kenyans.

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