Predatory asset finance fintech company Watu Credit is once again facing strong public criticism over its lending and installment practices, which many consumers say are unfair and financially draining.
The company has been accused of structuring repayment plans that push the final cost of everyday consumer goods far beyond their normal cash prices, leaving borrowers struggling to keep up with daily payments.
The latest complaint comes from a customer who purchased a Samsung smartphone through Watu Credit under an installment plan.
According to the customer, the phone’s cash price was Ksh 10,400. However, after paying an initial deposit of Ksh 4,000, the buyer was required to pay Ksh 86 per day under the agreed repayment schedule.
Over time, this daily payment adds up to more than Ksh 35,000, which is more than three times the original cash price of the phone.
The customer describes the experience as exploitative and says it has placed them under serious financial pressure.In a message shared publicly, the concerned consumer expressed frustration and disappointment with the system.
The message explained how a basic smartphone, meant to support communication and access to digital services, had turned into a heavy financial burden. The customer argued that such lending models target ordinary Kenyans who may not have access to traditional credit options and who are often unaware of how costly these installment plans become over time.
The call was clear that the repayment schedule should either be revised or the company should be forced to exit the market.
This complaint has reopened wider conversations about the asset financing sector in Kenya and how some fintech companies operate. Many consumers turn to installment plans because they cannot afford to pay cash upfront. While these services are meant to increase access to essential goods, critics say some lenders take advantage of this need by setting repayment terms that are difficult to understand and even harder to sustain.
Daily payment models in particular are said to place constant pressure on borrowers, making it easy to fall behind and incur penalties.
Consumer rights advocates argue that transparency is a major issue. They say borrowers are often focused on the daily payment amount, which may appear small, without fully understanding the total cost by the end of the repayment period.
In the case of the Samsung phone, Ksh 86 per day may seem manageable at first, but over many months it results in a shocking final figure.
For low income earners, this can mean sacrificing basic needs just to keep up with payments.
There are also concerns about the psychological impact of such loans. Many borrowers report feeling trapped, stressed, and powerless once they realize how much they will end up paying.
Some fear defaulting because of possible penalties, repossession, or damage to their credit records. This fear can push people deeper into financial hardship rather than helping them improve their lives.
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