The Senate Committee on Trade, Industrialisation, and Tourism has cleared microfinance company Watu Credit of any wrongdoing after it completed its investigations on the firm on alleged malpractice in the market.
The committee summoned Watu following a statement by Nandi Senator Samson Cherargey claiming that the firm is operating illegally.
Cherargey had cast doubts on the company's activities following numerous complaints from the firm’s customers, who petitioned the Senate over rampant theft of motorcycles purchased from the company.
Subsequently, the Senate committee asked Watu to submit information regarding the claims of wrongdoing and exploitation concerning its operating methods in Kenya, and they complied.
After examining the firm's response, the Senate committee determined it was enough and permitted the matter to be concluded.
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“Vide your letter dated 23rd November 2023, the committee received your response to the information sought.At its sitting held on Novber 30th,2023,the Committee observed that the response was sufficient and resolved to conclude and close the matter,” said Clerk of Senate Jeremiah Nyegenye in a letter to the firm dated December 8th,2023.
According to Watu Credit country manager for Kenya Erick Massawe said the company had to give details on a register of active cases in police stations and a register of vandalized assets to the committee as part of the clearance process.
Watu was also expected to provide a register of customer refunds from sales and re-possessed assets on a county-by-county basis.
They were also asked to provide details on tax compliance and its loan foam.
“Providing these details as part of the condition to be absolved of the allegations was very easy.You also need to know that we are very happy that we have been absolved these shady blames.It’s mark of approval to politicians that we operate above board,” said Mr Massawe said.
