Spiro Faces Allegations Over Unpaid Dues and 'Exploitative' Model

By Grace Makovu

 

A storm is brewing in Western Kenya as landlords who leased premises to electric mobility company Spiro (Africa Smart Mobility Solutions Kenya Limited) accuse the firm of breaching lease agreements barely months after its high-profile launch by President William Ruto.

The landlords, who provided space for Spiro's electric bike battery swap stations, claim the company has delayed rent payments for December and January, with some yet to receive a cent despite signed contracts and an initial three months of prompt payment.

"When we signed agreements in August and September, everything seemed above board. We were paid for September, October, and November without issue. Then suddenly, December came and went, no payment. March is now ending, and still nothing," said a landlord in Kisumu who spoke on condition of anonymity.

Another landlord in Bungoma expressed frustration at the silence from Spiro's management. "We have sent emails, made phone calls, even visited their offices. The response is always the same: 'We are reviewing our budget.' But that was not in our agreement. A lease is a lease."

However, insiders within the company's finance department have pointed to an unlikely source of the disruption. According to a source who requested anonymity for fear of reprisal, the delay in rent payments follows a directive from none other than President William Ruto, who reportedly holds stake in the business.

"The President personally ordered a review of all rent payments. He sent auditors to the ground to reassess what the company is spending on leases, citing that expenses were too high," the insider claimed.

If true, the revelation raises questions about the extent of presidential involvement in a private entity that has received significant government backing, including a KSh2.6 billion tax incentive approved by the Treasury. 

Critics argue that such incentives were granted without adequate public oversight or accountability, and the alleged direct intervention by the President in operational matters blurs the line between public duty and private interest.

Landlords are puzzled by the sudden scrutiny. "Why now? They assessed the premises before signing. They agreed to the rent. We even made improvements to meet their specifications. Now we are being told the President thinks rent is too high? That is not our problem," said another affected landlord in Kakamega.

The rent dispute is just one front in a widening war of attrition between Spiro and its stakeholders. Across the country, riders who purchased or leased Spiro's electric motorcycles are voicing grievances that paint a picture of an exploitative business model.

Riders allege that Spiro's ownership structure is deliberately opaque. 

Many claim they do not fully understand the terms under, which they acquired the motorcycles, with some believing they were working toward ownership, only to discover the arrangement was more akin to perpetual leasing.

"You sign papers, but you don't really know what you are signing. They explain in a rush, and later you find out the bike is not really yours. You cannot sell it, you cannot modify it, you cannot even charge the battery at home. Everything must go through them," said a rider in Mombasa.

Others allege that Spiro remotely disables motorcycles if the batteries remain unused for five consecutive days. In some cases, riders claim their batteries were marked as "stolen" without explanation, rendering their motorcycles useless and forcing them to seek costly replacements.

"You wake up one morning and your bike won't start. You call Spiro, and they say the battery has been flagged as stolen. But it's right there with you. You have to pay a fine or buy a new battery. It feels like a trap," said a rider in Nairobi.

Monopoly on Repairs

Riders also accuse Spiro of eliminating competition by controlling the supply of spare parts and locking them into using company-approved mechanics at inflated costs.

"You cannot take your bike to a local mechanic, even for simple repairs. If you do, Spiro says you have violated the contract and they can take the bike back. So you are forced to pay whatever they charge at their workshops," said a rider in Kisumu.

This has led to accusations that Spiro is building a closed ecosystem that benefits the company at the expense of riders, many of whom depend on their motorcycles for daily income.

KSh2.6 Billion Tax Incentive Under Scrutiny

At the heart of the controversy is the KSh2.6 billion tax incentive granted to Spiro by the Kenyan government. Critics argue that such a massive public subsidy should have come with stringent oversight mechanisms to ensure the company operates ethically and transparently.

"When you give a company billions in tax breaks, you are effectively asking Kenyan taxpayers to subsidise that business. In return, the company must be held to the highest standards of accountability. These allegations suggest that is not happening," said a governance and ethics researcher who requested anonymity.

Parliament's Public Accounts Committee has yet to announce any investigation into the incentive or the company's operations, despite growing public outcry.

Spiro's Silence

Efforts to obtain comment from Spiro's management were unsuccessful at the time of publication. The company's communications team did not respond to emails or phone calls. Its website and social media channels remain active but make no mention of the rent disputes or rider allegations.

Landlords, meanwhile, are growing impatient. Some have threatened legal action, while others have resorted to issuing demand letters through their advocates.

"We have been patient, but patience has limits. If Spiro cannot honour its lease agreements, then they should vacate our premises and pay what they owe. We are not a bank, and we did not sign up to finance their business," said a landlord in Eldoret.

The mounting disputes come at a delicate time for President Ruto, who has positioned himself as a champion of green energy and electric mobility. The Spiro initiative was launched with great fanfare in September, with promises of 3,000 swap stations nationwide and a revolution in the boda boda sector.

If the allegations of rent defaults, exploitative contracts, and opaque ownership structures are proven true, they could undermine public confidence not only in Spiro but in the broader push toward electric mobility in Kenya.

For now, landlords, riders, and critics are watching closely, and waiting for answers that have yet to come.