NAIROBI, Kenya Sept 14 – East Africa’s asset financier, MOGO, has said that all loan repayments by clients would now only be made in Kenyan shillings.
This move is intended to shield clients from forex rate market fluctuations.
Mogo, which is finalising the development process that will allow its current customers to switch their loan payments to Kenya Shillings, stated that the decision will provide significant relief for prospective customers by stabilising their monthly repayments.
Stephen Mwangi, Head of Car Financing at Mogo, said the decision will also allow customers to better manage their budgets and make payments without worrying about currency exchange rate fluctuations.
“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,” said Stephen Mwangi, Head of Car Financing.
He affirmed that customers will have access to extra benefits like eligibility for loan top-ups, repeat loan offers, and increased loan limits by developing a positive payment history and credit score.
“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 Mwangi.
Additionally, the firm abolished application fees and reduced the loan repayment period for car financing and logbook loans from 3 years to 2 years, 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, bodaboda financing, bodaboda logbook loans, tuk-tuk financing, and tuk-tuk logbook loans.
Car, bodaboda, and tuk-tuk financing assist customers in purchasing vehicles, while car, bodaboda, 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 bodaboda and motor vehicle loans, benefiting over 120,000 Kenyans with affordable financial products.
