Mogo Kenya has announced that it has stoppėd 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 shílling 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 Competítion 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 Shílling denominated loans. Less than 15% of all Mogo customėrs by free choice had taken dollar-denominated loan. Unfortunately, due to currency fļuctuatíons, loan repayment amounts for part of such customėrs 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 Competítion 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 customėrs,” Mogo added.
The lender says that the settlement agreement means a goodwíll 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: Mogo Slashes Monthly Payments For Car Financing, Logbook Loans
>>> MOGO Launches Financial Literacy Tool For Kenyan Consumers
Leave a comment