NAIROBI, Kenya- Asset financier MOGO is shaking things up for its customers by announcing a significant change: all loan repayments will now be made in Kenyan shillings.
Previously, customers dealt with payments in foreign currencies—mainly the US dollar—but this change is designed to protect them from the Shilling’s fluctuating exchange rates, which have caused increased repayment costs.
MOGO’s decision to shift from foreign currencies to the Kenyan Shilling comes as a welcome relief for borrowers.
With the Shilling’s depreciation against major foreign currencies, many customers have been hit with higher repayment costs, putting undue pressure on their finances.
According to Stephen Mwangi, MOGO’s Head of Car Financing, the shift not only stabilizes monthly repayments but also offers greater convenience since most customers don’t hold foreign currency accounts.
“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 provides greater ease of repayment, simplifying things for borrowers who now won’t have to worry about exchange rates,” Mwangi explained.
MOGO has also gone the extra mile to abolish application fees and shorten the loan repayment period for car financing and logbook loans from 36 months to 24 months.
These changes lower the total interest paid by customers, making the financing more affordable overall.
MOGO has long been a major player in asset financing, offering products ranging from boda boda loans to tuk-tuk financing.
The firm’s new terms provide fresh car, boda boda, and tuk-tuk financing for new purchases, while logbook loans give current vehicle owners access to funds without needing to sell their assets.
Over the past five years, MOGO has disbursed a whopping Sh20 billion in loans, benefiting more than 120,000 Kenyans.
These affordable financial products have allowed individuals and small businesses to acquire vehicles, grow their operations, and meet their financial goals.
MOGO’s focus isn’t just on traditional vehicles. As part of its commitment to sustainability, the firm is actively financing e-bikes and electric three-wheelers, helping to promote e-mobility across Kenya.
This move is in line with the global shift towards greener, more sustainable transport solutions, and aligns with Kenya’s efforts to reduce its carbon footprint.
“We’ve listened closely to our customers and the market, especially given recent economic challenges and the depreciation of the Kenyan Shilling,” Mwangi noted.
“This change is designed to make repayments easier, safeguard customers’ credit scores, and encourage the adoption of eco-friendly transportation options.”
With its customer-focused approach and forward-thinking initiatives, MOGO continues to position itself as a leader in Kenya’s asset financing space, providing much-needed solutions for everyday Kenyans.
