𝗞𝗜𝗚𝗨𝗠𝗢 𝗠𝗣 𝗦𝗘𝗘𝗞𝗦 𝗦𝗧𝗔𝗧𝗘𝗠𝗘𝗡𝗧 𝗢𝗡 𝗣𝗟𝗜𝗚𝗛𝗧 𝗢𝗙 𝗕𝗢𝗗𝗔𝗕𝗢𝗗𝗔 𝗢𝗣𝗘𝗥𝗔𝗧𝗢𝗥𝗦
𝗙𝗿𝗶𝗱𝗮𝘆, 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝟮𝟯, 𝟮𝟬𝟮𝟰
Kigumo MP, Hon. Joseph Munyoro has sought for a Statement from the Chairperson of the Departmental Committee on Finance and National Planning on the plight of boda boda operators across the country.
Hon. Munyoro acknowledged that the boda boda sector has played a key role in the uptake of the buy-now-pay-later (BNPL) models for purchase of merchandise such as motorcycles. The model has gained popularity especially among young and low-income consumers who may not have access to traditional credit facilities.
Highlighting the precarious situation faced by boda boda operators, Hon. Munyoro emphasized the alarming trend of buy-now-pay-later (BNPL) schemes, which have ensnared many young and low-income individuals in cycles of debt. He stressed that while these models promise accessibility to vital assets like motorcycles, they often conceal hidden fees, exorbitant interest rates, and aggressive debt collection tactics.
"However, what is marketed as an accessible path to owning a motorbike and achieving financial independence has become a nightmare for hundreds of jobless youths in the country," Hon. Munyoro said.
"These lenders lure borrowers with deceitful promises of low down-payments and easy installments yet hidden fees, exorbitant interest rates, and aggressive debt collection tactics soon reveal the true cost of a commodity," he added.
Reports indicate that boda boda operators and small vendors constitute a significant portion of BNPL users. However, the cutthroat nature of the boda boda business means that daily earnings often fall short of meeting weekly installment demands, leading to indiscriminate motorcycle impoundments, even for those with minimal outstanding debts.
Hon. Munyoro has therefore sought an explanation on the measures that the Government has put in place to regulate the activities of (BNPL) providers in the country including addressing rogue lending institutions responsible for violations of consumers' rights; and plans the Government has put in place to develop alternative financing models that are fair, transparent, and genuinely empower boda boda operators.