Watu’s comprehensive response to Media Reports: A commitment to financial inclusion and national development in Kenya

Our interest has been drawn to some recent social and mainstream media reports touching on the operations of Buy-Now, Pay Later service providers in Kenya. As a responsible corporate citizen of Kenya and guided by our operating values and principles, we are inclined to share the following statement of facts publicly:

1. Watu is an asset finance solutions provider powered by a robust digital engine geared at revolutionizing mass-market mobility in Kenya and beyond through financial inclusion and accessibility. It is a subsidiary of Watu Africa, a multinational FinTech solutions provider with wider operations in DRC, Uganda, Sierra Leone, Tanzania, Nigeria, and Rwanda. Established in 2015, Watu is backed by several leading global impact investment funding agencies committed to world-class corporate governance and ethical trading.
2. At Watu we are committed to fostering national development and economic inclusion by providing non-bank financial services. We provide various asset finance solutions that allow underserved communities to access economic production opportunities. Our solutions include Watu Boda (two and three-wheeler financing), Watu Simu (smartphone financing), Watu Shule (Kenya’s first motorbike riding school), and Watu Gari (car financing).
3. All our solutions feature flexible repayment hire purchase products. The hire purchase price comprises the asset’s retail price and the value-added services. The value-added services include fees for a GPS tracker, log book transfer, customer service, and a 24/7 emergency response team.
4. At Watu, we have financed more than 700,000 two and three-wheelers, allowing more than 2.1 million Kenyans to power their economic hustles as informal public transport solution providers.
5. Attesting to our clients’ commitment and latent demand for our solutions, we have a more than 96% performing hire purchase portfolio with more than 70% repeat clients. Our Watu Simu solution is growing fast and catching up with our Watu Boda and Watu Gari solutions.
6. All our clients have access to a dedicated customer service center to enable them to make the necessary queries and provide reports that require our corporate attention. Our clients can also check their loan balance by dialing *876# and following the prompts on the USSD solution. We offer dedicated customer service support from 6 a.m. to 10 p.m. daily, including weekends. The Customer Care line is 0790 000 999/0709 739 000.
7. Watu Boda works with the registered Boda Boda Riders Associations and over 400 authorized dealers across Kenya, providing two and three-wheelers with several models to choose from: Ampersand, ARC Ride, Bajaj, Haojin, Honda, Jincheng, Lifan, Piaggio, Spiro, Skygo and TVS.
8. We are aware of the growing risk of suspected organized crime elements perpetuating motorbike theft. Consequently, we collaborate closely with security enforcement and sector stakeholders to stem the vice. From our current portfolio of 400,000 financed motorbikes, less than 100 bikes have been reported as lost. Where reports are made, we cooperate with investigative and insurance companies to ensure speedy resolution.
9. In 2023, more than 100 motorbikes financed by Watu Credit were reported stolen. Using our fleet management and tracking solution, 96 bikes were successfully recovered with the support of the National Police Service. The missing bikes insured by several leading insurance providers have also been fully settled, allowing our clients to remain in business.
10. Watu takes immense pride in its role as a patriotic and committed Kenyan business. Throughout the past nine (9) years, we have been dedicated to making substantial contributions to the Kenyan economy, as well as to the welfare of our fellow citizens and the general public. Some of our specific contributions include:

• • Over 5 Billion KES in taxes, contributing directly to Kenya’s fiscal well-being.
  • Extending financial and digital inclusion to over 1.3 Million customers in Kenya;
    • Over 500,000 loans for mobility assets
    • 800,000 loans for smart connected devices.
  • Employment opportunities:

• Directly employing 1,500 full-time employees

• • Providing over 600,000 business opportunities and indirect employment across Kenya.
• Economic and social development for over 6 million people across Kenya.
  • Demonstrating economic empowerment in alignment with the ‘bottom-up’ economic transformation doctrine, benefiting over 500,000 successful business owners who have completed their mobility asset loan repayments who are directly supporting over 3,000,000 people within their families and communities.
  • Connecting over 500,000 businesses to the digital business environment via financed smartphones which has boosted their revenue.
• What’s Social Impact Projects: Beyond its commercial products and offerings, Watu has invested significantly in social impact projects, directly benefiting over 10 Million people across the country, Our social impact projects are:
  • Tujenge Msingi: In partnership with NTSA, Watu launched a campaign dedicated to road safety dubbed ‘Tujenge Msingi’ based on our commitment to the Sustainable Development Goals (SDGs), specifically the SDG 3 – to ensure healthy lives and promote wellbeing for all ages and SDG 8 – to promote sustained, inclusive and sustainable economic growth full and productive employment and decent work for all. To date, Watu has sponsored (7) events impacting the lives of 7,000+ boda boda riders partnering with key government stakeholders and media to create a comprehensive understanding, adherence, and sustained road safety program dedicated to all boda boda riders, their customers, all road users and public at large.
  • Scholarship Programme: In 2022, Watu successfully launched a Scholarship Program to support the educational aspirations of students from Bodaboda rider families. This initiative covers various educational costs such as tuition fees, transportation, supplies, uniforms, books, and allowances, aiming to provide holistic support to students throughout their high school education. Currently, the program benefits a total of 37 students, comprising 22 girls and 15 boys distributed across different regions in Kenya. Through empowerment and mentorship, the scholarship program strives to groom future leaders and foster positive transformation within communities.

1. Following the recent publishing of a draft National Electric Mobility Policy at Watu Boda, we have committed to finance the acquisition of more than 500,000 Electric Motorbikes by 2030. We plan to invest more than KShs 1.3 billion in accelerating efforts to transition from financing fossil fuel-powered motorbikes to electric bikes progressively by actively bridging the financing gap, which has been identified as a critical barrier to the acquisition of Electric Vehicles, including two—and three-wheel motorbikes. On the e-mobility front, we are collaborating with several manufacturing partners, such as ARCrc Ride and GOGO Electric, to deliver bikes made for local conditions. We will also develop a nationwide network of electric bike battery-swapping stations.

At Watu, we take pride in our customer focus, and we are always available on various platforms to address all our customers’ needs. We have a fast turnaround score as all our operations are automated, and we aim to get your asset processed transparently within 2 hours, as we have no hidden fees; what you see is what you get!