Babu Owino to intervene over exorbitant interest rates on loaned phones and Motorbikes
By Mabonga Makhanu, August 31, 2025Embakasi East Member of Parliament Babu Owino has vowed to table a bill in Parliament seeking to reduce the exorbitant interest rates charged on motorcycles and mobile phones purchased on loan.
While speaking during a church service in Funyula on Sunday, August 31, 2025, the MP expressed his frustrations with the current system, where Kenyans end up paying triple the actual value of items acquired on credit.
He pointed out that many people purchase phones worth Ksh10,000 on loan, but by the time they finish paying, the total cost rises to more than Ksh30,000. He described this as outright exploitation that continues to burden ordinary citizens.
“nimepeleka mswada huko bungeni na nimepeleka pamoja na ya Bodaboda; hapa unachukua simu ya Ksh10,000,alafu unaambiwa siku utamaliza kulipa hiyo simu itakuwa over ksh30,000. hio ni ungwana ama ni wizi,” Babu Owino stated.
Babu Owino also highlighted the situation facing boda boda riders who acquire motorcycles on loan. In most cases, a motorcycle bought at Ksh100,000 ends up costing as high as Ksh300,000 by the end of repayment. He argued that such inflated interest rates are unfair and oppressive, especially to young people who depend on boda bodas for their livelihood.
According to the legislator, the motion he has already presented in Parliament seeks to cap interest rates at a reasonable margin. If passed, a phone acquired on loan at Ksh10,000 will only attract an additional Ksh2,000 as interest, bringing the total to Ksh12,000 instead of the current Ksh30,000. Similarly, a motorcycle purchased on loan at Ksh100,000 will cost only Ksh110,000, a manageable figure for struggling Kenyans.
“Eti unaambiwa ya kwamba unanunua bodaboda, unapewa kwa deni siku ya kumaliza kulipa, unamaliza kulipa ikiwa ni ksh300,000, kwa hivyo tunapelwka mswaada bungeni hii mambo ukichukua loan,” he added.
Babu Owino maintained that the bill is intended to protect Kenyans from predatory lending practices and ensure that loans for essential items such as phones and motorcycles remain affordable.
Ruto’s promise on motorcycles
This comes days after President William Ruto promised to slash the cost of motorcycles by half, saying the move will help ordinary Kenyans become owners and improve their economic livelihoods.
Speaking on Thursday, August 7, 2025, at State House, Nairobi, the Head of State met with boda boda officials drawn from all sub-counties across the country. During the meeting, he promised a number of measures aimed at making motorcycles more affordable and supporting the growth of the boda boda sector.
Under the proposed plan, the purchase price of a motorcycle would drop from Ksh190,000 to Ksh95,000. Additionally, he said the initial deposit required would be lowered from Ksh70,000 to just Ksh9,500, while daily repayment rates would be reduced from Ksh500 to Ksh180. These adjustments aim to ensure that more Kenyans, especially the youth and those from low-income backgrounds, can afford to acquire motorcycles and engage in income-generating activities.
President Ruto also revealed his intention to push for legislative changes in Parliament to eliminate taxes currently imposed on motorcycles. He noted that removing these taxes could lower prices further by approximately Ksh10,000, making motorcycles even more affordable for the average citizen.