In a bold move that has sent ripples through Kenya’s mobile technology and finance sectors, Embakasi East Member of Parliament Babu Owino has publicly declared his intention to crack down on what he terms “predatory practices” in consumer phone financing, directly targeting industry giant M-KOPA.
The announcement, made via a social media post on August 24, 2025, has ignited a fierce public debate, drawing overwhelming support from thousands of Kenyans who feel trapped by exorbitant credit schemes.
The Core of the Controversy
At the heart of Owino’s argument is a stark price disparity that he claims exploits low-income Kenyans. The MP highlighted that a mobile phone with a market value of Ksh 12,000 can balloon to a staggering Ksh 30,000 for a consumer under existing financing plans offered by companies like M-KOPA.
“Even under the principle of willing buyer-willing seller, consumers must be protected from exploitation,” Owino stated in his post. “Every Kenyan deserves access to affordable mobile technology, but not at the cost of crippling debt.”
His proposed Bill aims to introduce stringent regulations to ensure “fairness, transparency, and protection for all consumers” in the mobile phone credit sector.
Public Reaction: A Resonating Cry for Help
The comments section transformed into a testimony forum, with hundreds of users sharing their own experiences of paying far more than a device’s worth. Many expressed frustration with complex payment structures, high-interest rates hidden in daily payments, and the fear of having their devices remotely locked after missing a single instalment.
“This is not just about phones; it’s about financial dignity,” commented one user. “They target those who have no other option for credit and trap them.”
The Other Side of the Coin
While popular with consumers, the proposed legislation is likely to face strong opposition from the mobile device financing industry. Companies like M-KOPA have built a business model on providing asset-financing to populations traditionally excluded from formal banking.
Industry defenders argue that the higher total cost reflects the significant risk of lending to customers with no credit history, the cost of technology for remote-locking devices (which secures the loan), and the convenience of micro-payments spread over a long period. They contend that the value offered is not just the phone, but access to credit, digital inclusion, and a pathway to building a credit score.
What’s Next?
The journey from a social media declaration to an enacted law is long and complex. MP Owino will need to formally draft the Bill and rally significant support within Parliament for it to pass. The proposal will undoubtedly be subject to rigorous debate, involving stakeholders from consumer rights groups, the finance and technology sectors, and government regulators.
However, one thing is clear: Babu Owino has successfully thrust the issue of consumer protection in the digital credit space into the national spotlight. Whether the Bill passes or not, the conversation about fair pricing, transparency, and the ethical responsibility of lenders in Kenya’s digital economy has now begun in earnest.
