Mwananchi credit limited has been accused of conning unsuspecting members in a series of insider logbook loans fraud.
For the better part of 2020, there were several complaints about microfinance firms offering God’s speed logbook loans.
There are several firms now spread all over with, if the complaints are something to go by, the sole aim of fleecing Kenyans.Nick Otieno Mwananchi Credit is a scum. I currently have a loan with them and they messed me up big time. When you take a loan with them they have a requirement that you write cheques for the entire period of your loan so that when you default paying they bank them. But at times they intentionally don’t bank the cheques and claim you have defaulted so as to accrue penalties.
“Good morning Alai, I’m sorry to raise this but we need your help. Last year June I took a loan with mwananchi credit of 224k. I’ve been paying well then on Saturday they sent me the balance of 77K below and I asked them, are you sure this is the total amount I’m supposed to pay? Yes Christine. Yesterday I decided to pay a total of 77k so I can get my logbook back because this was the balance statement they sent me. To my shock late last night I’m being told the balance now is at 133K which they can’t explain how it added up again. Help us. Mwananchi credit is for sure conning people.” reads a post from one of the affected victims
This is not the only affected Kenyan, according to another user who commented on Robert Alai’ post, Mwananchi credit has done the same in the previous year.“My friend was taken to hell and back by those guys, you sign the crazy terms without a clue of what you are getting into, they need to be regulated,” Cate Knight posted.According to Caleb Kellie Khisa The fraud is everywhere not just Mwananchi credit. “All those get loan within 24hrs with your logbook crap are conmen and I can testify that…….run.”Pesh Anyole “Those are sisters to platinum,I know of someone who deserted job for paying 100k platinum loan for 6yrs of 7k monthly deduction and the last time I checked he was being told loan balance is 150k”Susan Njeri“There is one microfinance i applied for 500k and they told me ill pay 5 percent per month for 18 months, when i calculated i realised ill pay twice the amount, i.e 900k , NB, if no defaulting,crazy,,”
Another victim, Nicodemus King’ola, confirmed that indeed the allegation of an insider logbook fraud at Mwanchi credit ltd were “very true”
“The story going around about mwananchi credit is very true. I remember | took a loan with them at Kitengela branch. About 300K, | gave them my cheques sometimes they don’t deposit the cheques then they slap me with huge penalties. | ask one of there staffs there what is my current balance? You still have to pay interest and penalties that have accrued plus tracking. Jesus is Lord!| requested them for a waiver, they advised me to write a letter to their director, when | stated following on the feedback, again they told me nothing can be done its your obligation to pay the loan. Remember | gave them my cheques. I can tell they are after our cars and money that’s their main interest. If you go to sign the loan agreement, you are not given the copy, if you request to take a photo of the agreement, you are told our boss doesn’t allow that. After paying over 600k | still have a balance of 200k. They are investing in us.” Nicodemus King’ola’s message to Alai reads. According to their website, Mwananchi Credit Limited brags of being the leading provider of secured emergency Loans in Kenya.Dennis Mombo is the Executive Chairman and founding member of the Mwananchi Credit Limited according to his linked in profile.
Initially trading as Mwananchi Microlink Ltd from 15th April 2010, it officially changed names to Mwananchi Credit Limited on 10th January 2012.
Many unsuspecting Kenyans get enticed easily when they see that they are offering logbook loans from as low as 2.5% pm with the loans allegedly being disbursed within 6 hours.
Besides Logbook Loans, Mwananchi Credit also offers an array of other secured emergency loans including; Title Deed Loans,Asset Financing ( Car Loans ), Import Financing, Cheque Discounting, Check off Loans ( For Civil Servants and MoU companies), Salary advance loans, Trade Financing ( Bid bonds, Performance bonds, advance payment guarantees)
So, why are these micro finances not being regulated while proof of alleged fraud and con pieces of evidence are being splashed online by affected members?
In 2018, the Co-operative Alliance of Kenya (CAK), an umbrella lobby for the 15 million-member-strong co-operative movement in Kenya, rejected the amendments to the co-operative law affecting 22,000 unions and societies.
“Once a person is admitted into membership of a co-operative society, he ranks equal with other members in respect to fundamental issues such as the minimum number of shares he subscribes to and pays for (and) one vote irrespective of shares held and interest in the society,” said CAK Executive Director Daniel Marube.
The reforms would have allowed, by way of an ordinary resolution approved by the Cabinet secretary, creation of a class of members to be referred to as “social impact members”. These shall not be subject to the primary and normal requirement that each member has to subscribe and purchase a given number of shares to be admitted into membership of a co-operative.
In further amendments, social impact members will enjoy the right to attend and participate in decisions taken in a general meeting of the society and to vote. They will also have the privilege of being elected into organs of society.
Here are a few of the reactions and comments from other Kenyans on Facebook.Samuel Thiongo Mwananchi Credit, Plantinun, Momentum Credit name them… these are Shylocks disguised as saccos….avoid them if you canHabana Haba These credit companies know quite well the minute you walk in your car is gone.they even have buyers lined up already.it is always in their interest that you default,not that you pay.and they know if you give your car as collateral(they give 30% of the value-which they seriously undervalue)someone who loaned 300k on a 1m car will not do a miracle and get the 300k plus interest otherwise they would have done it and not come to them.almost 90% of people default.you give your car on 1st you pay interest only on 30th ,already they know you will get stuck.they will eat the interest for 3 months, 6 months and your car is being paid for by someone.its not yours anymore but you are still paying interest.you will either opt out they sell the car or pay for the rest of your life-interest only.Lorraine Jelagat These guys are like ngao credit and the rest. I once borrowed 124k I ended up paying 536k with fees and figures that dont add upThis article was first published by Kenyan Bulletin.