Budget Committee Grills CBK Governor Over Cost, Regulation of Loans as MPs Raise Alarm Over Asset Seizures

The National Assembly Budget and Appropriations Committee has raised concerns over the regulation of credit providers and the protection of borrowers as lawmakers engaged Central Bank of Kenya (CBK) Governor Dr Kamau Thugge on monetary policy and the state of the economy.

The committee, led by Vice Chairperson Robert Pukose, held discussions with the CBK Governor on monetary policy operations, economic performance and measures being implemented to support economic activity and improve the business environment.

During the engagement, lawmakers examined the state of the Kenyan economy, the implementation of the 2025/26 financial year budget and key monetary policy measures undertaken by the Central Bank in 2025 and 2026.

The MPs also sought to understand how monetary policy decisions are affecting businesses and ordinary Kenyans, particularly access to affordable credit at a time when small enterprises and individuals continue to rely heavily on loans to finance their activities.

A major issue raised during the meeting was the growing number of lending institutions and asset-financing companies targeting small businesses, motorcycle riders and digital taxi operators.

Lawmakers questioned the regulatory framework governing these lenders, with particular focus on whether borrowers are adequately protected from practices that could leave them without the assets they have been paying for over an extended period.

Hon. Jane Kagiri sought clarification on the institutions responsible for regulating various lenders and protecting consumers who obtain motorcycles, vehicles and other assets through financing arrangements.

She highlighted cases where borrowers who have already made substantial repayments risk losing their motorcycles or vehicles after falling behind on payments.

The lawmaker also raised concerns over additional charges imposed on borrowers even after they have cleared what they believed to be their outstanding loan balances.

She called for clarity on the regulatory framework governing such practices and the mechanisms available to protect consumers from unexpected financial obligations.

The concerns come amid increased reliance on asset financing among young people and small-scale entrepreneurs, particularly motorcycle riders and digital taxi operators who depend on financed vehicles and motorcycles as sources of livelihood.

The committee also received a briefing on measures being undertaken by the CBK to improve the business environment, support economic activity and facilitate effective implementation of the national budget.

The discussions further placed the spotlight on the role of monetary policy in influencing credit availability, interest rates and broader economic activity.

The engagement between the lawmakers and the CBK Governor is expected to inform Parliament's oversight of the economy and the implementation of government programmes under the current financial year.