MOGO Switches Loan Repayments to Kenyan Shillings to Cushion Customers from Forex Rate Fluctuations

By Catherine Muema On Sep 12, 2024

By Shadrack Nyakoe

East Africa’s leading asset financier, MOGO, has announced that all loan repayments will now be made exclusively in Kenyan Shillings.

This change aims to protect customers from fluctuations in foreign currency exchange rates.

The switch provides significant relief for prospective customers by stabilizing their monthly repayments.

MOGO is also finalizing development of a process that will allow their current customers switch their loan payments to Kenya Shillings.

With loans now being repaid solely in Kenyan Shillings, customers can better plan their budgets without concerns over currency exchange rate variations impacting their payments.

“In the past three months, our customers have already been making repayments in Kenyan Shillings. 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 offers greater convenience, as most customers do not hold accounts in foreign currencies,” said Stephen Mwangi, Head of Car Financing.

“Customers will benefit from building a positive payment history and credit score, which will open doors to additional benefits from MOGO, such as eligibility for loan top-ups, repeat loan offers, and increased loan limits. Additionally, we have abolished application fees and reduced the loan repayment period for car financing and logbook loans from thirty-six to twenty four months, which has significantly lowered the total interest customers pay for their loans.”

MOGO provides a range of asset financing options, including car financing, car logbook loans, boda boda financing, boda boda logbook loans, tuk-tuk financing, and tuk-tuk logbook loans.

Car, boda boda and tuk-tuk financing assist customers in purchasing vehicles, while car, boda boda and tuk-tuk logbook loans support those who already own vehicles but need funds to meet various financial needs without selling their assets.

Over the past five years, MOGO has disbursed Sh20 billion in boda boda and motor vehicle loans, benefiting over 120,000 Kenyans with affordable financial products.

The firm is also focused on financing e-bikes and electric three-wheelers to promote e-mobility adoption in Kenya.

“MOGO has listened to customer and market feedback, especially considering recent economic challenges and the significant depreciation of the Kenyan Shilling against foreign currencies. This shift aims to ease payment difficulties and prevent negative impacts on customers’ credit scores,” added Mr. Mwangi. “This transition will enhance MOGO’s competitive edge in the market and solidify its position as a leading provider of asset financing in Kenya. We remain committed to offering the best price guarantee for the products our customers value.”