BNPL Firms in Kenya Accused of Predatory Lending, Fueling Push for Regulation
According to a report by ResearchandMarkets.com, Kenya’s BNPL payments volume is expected to grow 16.8% annually to reach just over $1 billion by 2024. Motorcycles, smartphones, solar panels and cooking gas cylinders are the most commonly purchased items under Kenya’s BNPL arrangements. Credit card penetration is also very low, just over 6%, limiting consumer choices. BNPL’s products have become increasingly attractive to many in the country as real wages have fallen over the past four years amid high inflation and unemployment. But proposed legislative changes are expected to have an impact on the industry. The revised Business Law Bill will enable the Central Bank of Kenya to control the interest rates set by BNPL.
