Mogo Kenya has announced that it has stoppÄ—d offering dollar-denominated loans in Kenya.
The lender says the move was effected in May 2024, following complaints from Kenyans who had taken such loans, resulting in them paying more following the weakening of the Kenyan shÃlling against the US dollar.
“Mogo has also made a decision to stop issuing new dollar-denominated loans in Kenya since May 2024,” the company stated on Friday, October 4, 2024.
Following complaints raised through the CompetÃtion Authority of Kenya (CAK), Mogo decided to enter into a settlement agreement with the CAK and the complainants.
“The product had lower interest rate as compared to Kenyan ShÃlling denominated loans. Less than 15% of all Mogo customÄ—rs by free choice had taken dollar-denominated loan. Unfortunately, due to currency fļuctuatÃons, loan repayment amounts for part of such customÄ—rs increased.”
Mogo Kenya is known for providing financing options for used cars, logbook loans, boda bodas, and tuk-tuk loans for Kenyans.
“In reference to the settlement we have entered into with the CompetÃtion Authority of Kenya, Mogo was guided by our values that the welfare of the customer is paramount. Dollar denominated loans was one of the products Mogo was offering to our customÄ—rs,” Mogo added.
The lender says that the settlement agreement means a goodwÃll settlement by Mogo rather than Mogo being fined for wrong behaviour due to dollar-denominated loans being fully legal as per the regulatory framework.
Read:Â Mogo Slashes Monthly Payments For Car Financing, Logbook Loans
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