MOGO Kenya Reaches Settlement with Competition Authority Over Dollar-Denominated Loans

MOGO Kenya, a leading provider of financial solutions for used cars, Boda Boda, Tuk Tuk, and logbook loans, has announced a settlement agreement with the Competition Authority of Kenya (CAK). The settlement comes in response to customer complaints over the company’s dollar-denominated loan products.

In a statement issued by the company, MOGO emphasized that the welfare of its customers remains paramount and that the decision to settle was guided by these values. The dollar-denominated loans, which represented less than 15% of MOGO’s total customer base, offered lower interest rates compared to loans in Kenyan shillings. However, fluctuations in currency exchange rates led to increased repayment amounts for some customers, prompting complaints to the CAK.

MOGO clarified that the settlement was a goodwill gesture, not an admission of wrongdoing, as dollar-denominated loans are legal under Kenya’s regulatory framework. The company has also ceased offering new dollar-denominated loans as of May 2024.

“MOGO is committed to adhering to the regulations of the financial sector in Kenya and ensuring that our services support the financial inclusion and growth of Micro, Small, and Medium Enterprises (MSMEs),” the statement concluded.