MOGO Kenya Reaches Settlement with Competition Authority of Kenya

Kenya, a leading provider of affordable financing for used cars, logbook loans, Boda Boda, and Tuk Tuk loans, has entered into a settlement agreement with the Competition Authority of Kenya (CAK) following complaints related to its dollar-denominated loan products.

In a statement, MOGO Kenya emphasized its commitment to customer welfare, noting that the dollar-denominated loans offered lower interest rates compared to Kenyan shilling loans, and less than 15% of its customers opted for this product voluntarily. However, due to currency fluctuations, some customers experienced increased repayment amounts, prompting complaints to the CAK.

“Mogo was guided by our values that the welfare of the customer is paramount,” the company stated. “When complaints were raised through CAK, Mogo decided to enter into a settlement agreement with the CAK and the complainants.”

The company stressed that the settlement was a goodwill gesture and not a penalty for any wrongdoing, as dollar-denominated loans remain legal under Kenya’s regulatory framework. However, MOGO has ceased offering dollar-denominated loans since May 2024 as part of its commitment to enhancing customer satisfaction.

MOGO’s financing solutions have been pivotal in supporting the upward mobility of Micro, Small, and Medium Enterprises (MSMEs) in Kenya, contributing to financial inclusion and economic growth.