MPs Move to Cap Boda Boda Motorcycle Loan Interest, Easing Debt Burden
Parliament considers extending the in duplum rule to boda boda loans, aiming to limit interest and protect riders from escalating debts on motorcycle financing.
By John Mtongoi Newsroom
August 21, 2026
2 min read
Boda boda riders could soon benefit from reduced financial strain if Parliament extends the in duplum rule to cover motorcycle financing companies. This move aims to curb the excessive accumulation of interest and charges that many riders face when they fall behind on loan repayments.
Background of the Petition
The Kenya Bodaboda Riders and Owners Association petitioned Parliament, highlighting unfair lending practices by motorcycle financiers. According to the association's National Executive Chairperson, Charles Gichira, some riders have paid more than the value of their motorcycles yet still do not fully own them. The petition also raised concerns over premature repossessions, difficulties in recovering stolen motorcycles despite tracking, and continued repayment demands even after insurance claims.
Understanding the In Duplum Rule
The in duplum rule limits the amount of interest that can accumulate on a debt to the outstanding principal, preventing indefinite growth of interest charges. Applying this principle to motorcycle loans could make the total repayment amount more predictable and prevent small repayment delays from ballooning into unmanageable debts.
Justice and Legal Affairs Committee Chair George Murugara stated that the committee will explore the applicability of the in duplum rule to these financing arrangements, noting that many motorcycle financiers are neither banks nor licensed money lenders and may lack legal grounds to impose high interest rates.
Parliament's Response and Potential Impact
- Majority Leader Kimani Ichung’wah emphasized the need for strict regulation and deregistration of predatory lenders exploiting boda boda riders.
- The parliamentary review may lead to enhanced transparency in loan terms, improved debt recovery processes, and better handling of insurance claims.
- For riders, this could translate to manageable debt levels, clearer financing costs, and a fair chance to own their motorcycles outright.
If enacted, these reforms could transform motorcycle loans from a source of perpetual debt into a viable path to ownership, safeguarding the livelihoods of thousands of boda boda riders across Kenya.
