NAIROBI, Kenya, Oct 4 – Asset financier MOGO has stopped issuing dollar-denominated loans after entering into an agreement with the Competition Authority of Kenya (CAK).
The removal follows complaints from customers whose payments went up after the greenback strengthened against the Kenyan shilling.
“When complaints were raised through CAK, Mogo decided to enter into a settlement agreement with the CAK and the complainants,” MOGO said in a statement.
“It is important to note that the settlement agreement means a goodwill settlement by Mogo rather than Mogo being fined for wrong behavior due to dollar denominated loans being fully legal as per regulatory framework to which Mogo adheres in Kenya,” it added.
“Mogo has also made a decision to stop issuing new dollar denominated loans in Kenya since May 2024.”
MOGO, which was incorporated in Kenya in 2012, offers financing options for used cars, logbook loans, boda boda, and Tuk Tuk.
“It is important to note that the settlement agreement means a goodwill settlement by Mogo rather than Mogo being fined for wrong behavior due to dollar denominated loans being fully legal as per regulatory framework to which Mogo adheres in Kenya.”
This comes after the firm was today slapped with a Sh10.9 million fine for engaging in false and misleading representation and unconscionable conduct against its customers.
CAK said the decision follows investigations triggered by complaints from four customers who accused the company of altering loan terms, applying fluctuating foreign exchange rates, and overcharging them.
