By Mercy Buyanzi
In a significant move to protect consumers and ensure fair business practices, the County Government of Trans Nzoia has revoked the licenses of four motorcycle asset financing companies.
Trade CEC Stanley Kirui
The companies have been accused of mishandling Boda Boda clients by overcharging beyond the loan agreements and operating under licenses that do not conform to the services they offer.
Trade CEC Stanley Kirui said the decision to revoke the licenses was made after a thorough investigation conducted by the relevant authorities.
The investigation revealed that the four companies engaged in deceptive practices and violated the terms of the loan agreements, causing financial hardships for their clients.
“The revocation of these licenses sends a clear message that we will not tolerate any misconduct that affects the financial well-being of our people by ensuring that they are not subjected to unfair and exploitative practices,” said Mr Kirui.
The investigation found that the companies had been charging exorbitant interest rates and fees that were not outlined in the loan agreements. Clients were also subjected to hidden charges and penalties, leading to a cycle of debt and financial strain.
Furthermore, it was discovered that the companies were operating under licenses that did not match the services they provided. This raised concerns about the legitimacy and credibility of their operations, as they were not adhering to the proper regulations and standards set by the county government.
“These companies were operating under licenses that did not align with the services they offered, which is a serious violation. Businesses must operate within the confines of their licenses,” he said.
The County Government took the action to protect affected clients by revoking the licenses of the four companies. This step ensures that they can no longer operate within the county, providing relief to individuals who have been victims of their unscrupulous practices.
As the affected clients seek to recover from their financial losses, the county government is actively exploring ways to support their rehabilitation and provide them with alternative financing options from reliable and trustworthy sources.