A few weeks ago, there has been a raging debate initiated by former Murang’a senate aspirant Pius Kinuthia about exploitative micro-finance institutions in Kenya that offer predatory lending to its customers through hidden and exaggerated charges whose only motive is to make you default and sell off your security mostly motor vehicles .
On November 18, 2022 at 10.10 am, Mr Kinuthia through his Tweeter @Believe_Kinuthia posed a question ?
‘’Which microfinance institutions do not allow their customers to go home with a copy of the agreement signed?
Mwananchi Credit which markets itself as the market leader in micro lending against motor vehicles topped the list with Kenyans pouring their hearts on the pain they have gone through after getting a loan from them.
‘’Happening all the time at Mwananchi Credit,’’ one Twitter user lamented
Another user lamented.
‘’I can’t tell you what Mwananchi Credit did to me in 2020/2021.All those microfinance are thieves,’’ another user identified as @Sallijep wrote
But who owns Mwananchi Credit.Mwananchi is owned by Dennis Mombo, a reclusive businessman who always walks with an armed bodyguard.
To ascertain claims how his company is embroiled in predatory lending, we went to the courts and analysed some of the cases that clients have filed in court accusing Mr Mombo company of exploitations.
Tuesday 01 november 2022 Mwananchi Credit was at Kiambu Law Courts where it is being sued by Charles Chege Mbuthia over predatory lending and hidden charges.
Same court, a hearing of an application to stop Mwananchi Credit from selling the property of Felix Sakwa is in court under MCC/E3864/2022.
October 12 2022, Mwananchi Credit was at Kiambu High court where it is being sued by Lydia Wanjiru Kariuki under HC.COMM/2019.
At Milimani Law Courts, the situation is the same and we will be analysing case by case .
Next week on Monday, we go into details on the intricate web of Mwananchi Limited and its other subsidiaries to avoid.