In what might curb the exploitative behaviors of some online lending apps and organisations that have continued to turn Kenyans to be slaves in their own country, fresh details have revealed that a legal battle is brewing as borrowers of Aventus Group, operating under the name “Lendplus,” prepare to challenge the company’s predatory loan policies and regulatory non-compliance.
The controversy, which initially came to light in May 2024 through whistleblower revelations, has gained momentum with recent accounts of exorbitant interest rates and harsh treatment of both borrowers and employees.
Blogger Cyprian Nyakundi, who has been vocal about social injustices, recently shared a disturbing account from a borrower who fell victim to Lendplus’ predatory practices. The borrower detailed how a Ksh 30,000 loan taken for 15 days ballooned into a staggering Ksh 20,000 in interest over just 30 days, representing an interest rate of 67%.
The borrower, who reached out to Nyakundi via X (formerly Twitter), expressed shock and frustration at discovering that Lendplus had extended their loan for an additional 15 days without consent, adding further interest charges.
The borrower wrote, “I was ready with their Ksh 30,000 thinking that this would be my only balance. In the end, I am paying an interest of Ksh 20,000 for a loan of Ksh 30,000 taken for 30 days.”
This case is not isolated, as others have also reported similarly exorbitant rates and aggressive collection tactics.
All the same, Nyakundi’s post has sparked discussions about the need for regulatory scrutiny and legal action against Aventus Group. The aggrieved borrowers are now seeking legal advice and potential allies to contest these exploitative practices in court.
The case has highlighted the urgent need for regulatory bodies to intervene and protect consumers from such predatory lending practices.
As the affected borrowers prepare for court, there is growing anticipation of a significant legal showdown that could have far-reaching implications for Kenya’s lending industry.
