By Njeri Irungu
Mogo Kenya has been providing affordable financing options for used cars, logbook loans, Boda Boda, and Tuk Tuk loans for Kenyans which contributes heavily to upward mobility of Micro, Small and Medium Enterprises (MSMEs) and the financial inclusion of many Kenyans.
In reference to the settlement we have entered into with the Competition Authority of Kenya(CAK), Mogo was guided by their values that the welfare of the customer is paramount.
Dollar denominated loans was one of the products Mogo was offering to
our customers.
The product had lower interest rate as compared to Kenyan Shilling denominated loans. Less than 15% of all Mogo customers had by choice taken dollar denominated loan.
Unfortunately, due to currency fluctuations, loan repayment
amount for part of such customers increased.
When complaints were raised through (CAK), Mogo decided to enter into a settlement agreement with the CAK and the complainants.
Of note is that the settlement agreement means a goodwill settlement by
Mogo rather than Mogo being fined for wrong behavior due to dollar denominated
loans being fully legal as per regulatory framework to which Mogo adheres to in Kenya.
In May 2024, Mogo made a decision to stop issuing new dollar denominated loans in Kenya.