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NAIROBI, Kenya [September 12, 2024] – MOGO, East Africa’s leading asset financier, has announced that all loan repayments will now be made exclusively in Kenyan Shillings, a move aimed at protecting customers from the volatility of foreign exchange rates. This change offers significant relief to borrowers by stabilizing monthly repayments, enabling them to better plan their budgets without the uncertainty caused by currency fluctuations.
Stephen Mwangi, Head of Car Financing at MOGO, emphasized the benefits of this adjustment, stating, “In the past three months, our customers have already been making repayments in Kenyan Shillings. This adjustment is designed to alleviate the extra burden on customers who have faced higher payments when the shilling weakens against other foreign currencies. It also offers greater convenience, as most customers do not hold accounts in foreign currencies.”
MOGO is also finalizing a process that will allow existing customers to switch their loans to Kenyan Shillings, further ensuring that all customers benefit from stable repayments. In addition to this change, the company has taken steps to enhance customer benefits. By building a positive payment history and credit score, borrowers will gain access to loan top-ups, repeat loans, and increased loan limits.
MOGO has also abolished application fees and shortened the loan repayment period for car financing and logbook loans from 36 months to 24 months, significantly reducing the total interest customers will pay.
MOGO provides a wide range of asset financing options, including car financing, car logbook loans, boda boda financing, tuk-tuk financing, and logbook loans for both. These services cater to customers seeking to purchase vehicles and those who need funds without selling their assets.
In the past five years, MOGO has disbursed KSh 20 billion in boda boda and motor vehicle loans, benefiting over 120,000 Kenyans. The firm is also advancing its focus on e-mobility, financing electric bikes and three-wheelers to support the adoption of sustainable transportation in Kenya.
“MOGO has listened to customer and market feedback, especially considering recent economic challenges and the significant depreciation of the Kenyan Shilling against foreign currencies. This shift aims to ease payment difficulties and prevent negative impacts on customers’ credit scores,” added Mr. Mwangi.
With this transition, MOGO strengthens its competitive position in Kenya’s asset financing market, reaffirming its commitment to providing affordable, customer-focused financial products.
