Kenyan BNPL startup Wabeh halts operations as defaults rise, cash flow tightens
- Wabeh paused operations in July, citing the need to simplify its operational model.
- The company faces growing claims of customer defaults and cash flow strain.
- Less than half of the devices sold through Wabeh are being repaid, according to a Nairobi-based retailer.
Wabeh's operational challenges highlight the critical need for regulatory clarity in the BNPL sector. Without proper licensing and oversight, companies like Wabeh may struggle to recover from defaults and maintain customer trust. The upcoming regulatory framework could either provide a lifeline or further complicate the landscape for BNPL providers in Kenya.
