Assent financing company Watu Credit has set a benchmark in the industry, after demonstrating that guarding client interests is one of the key pillars that guides their operations in Kenya and Uganda.

Watu Credit, which has set its sights on transitioning the ubiquitous boda-boda industry into electric-powered bikes, has received Client Protection Certification from the Microfinanza Rating (MFR) Certification Committee.

This accolade marks Watu Credit as the first financial institution in Kenya and the third in Africa to attain such recognition, highlighting its commitment to client protection and ethical business practices.

In a statement, the firm said this Bronze level certification reflects their dedication to upholding industry standards and compliance with various client protection regulations as set out in the Cerise+SPTF Methodology and the Universal Standards for Social and Environmental Performance Management.

The certification, which is valid for three years, amplifies Watu's adherence to best industry practices in customer care and financial services.

Andrii Volokha, General Manager for East Africa at Watu, said, “This recognition highlights our commitment to our customer's welfare and reinforces our reputation as a trusted asset financing provider.”

“I want to reassure our investors that we have aligned our systems and practices to adhere to the globally accepted client protection standards,” he added.

The certification process evaluated Watu Credit on several parameters of client protection services, including transparency, appropriate product design and delivery, privacy of data, governance and human resources.

Watu was also evaluated on responsible pricing practices, prevention of over-indebtedness, fair and respectful treatment of clients, and mechanisms for complaint resolution. On these checks, Watu said it achieved a compliance rate of 99 percent.

Read also: Watu Credit defends business model amid probe

Despite facing accusations of unfair business practices, Watu Credit has strongly defended its business model in Kenya. On May 17th, Erick Massawe, Watu Credit's Country Head, appeared before the National Assembly Committee on Finance and National Planning to clarify that while the company is not regulated under any specific Act or regulations in Kenya, it adheres to general statutes such as the Consumer Protection Act, the Data Protection Act, the Employment Act, and common law principles.

Since its establishment in 2015, Watu Credit has served over 500,000 clients in Kenya and Uganda, enabling them to acquire critical assets including motorbikes, three-wheelers, smartphones, and cars. The company remains a prominent asset financing provider on the continent.

Looking ahead, Watu Boda, a spinoff of Watu Credit, has committed to financing the acquisition of over 500,000 e-motorbikes by 2030, following the recent publication of a draft National Electric Mobility Policy.

The company plans to invest over Kes1.3 billion to transform from financing fossil fuel-powered motorbikes to electric bikes, addressing the financing gap identified as a critical barrier to the adoption of electric vehicles, including two- and three-wheeler motorbikes.

Watu Credit is partnering with manufacturers such as ARC Ride and GOGO Electric to deliver bikes tailored for local conditions and it’s also developing a nationwide network of electric bike battery-swapping stations.

The MFR Certification Committee, approved to conduct Client Protection Certifications under the Cerise+SPTF framework, aims to improve practices in the financial inclusion industry.

The Client Protection Pathway, a global initiative, ensures that financial products and services do not harm clients.

The certification framework includes three levels: gold, silver, and bronze, with the bronze level requiring compliance with entry-level indicators and a minimum score of 65 percent on total indicators.

Under its parent firm Watu Africa, the asset financiers have operations in the DRC, Sierra Leone, Tanzania, Nigeria, and Rwanda.

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