MOGO, which stands for “Mobility Group,” is a financial services company that focuses on providing accessible financing solutions primarily in emerging markets.
It specializes in various types of loans, including financing for used cars, logbook loans, and loans specifically for Boda Bodas and Tuk Tuks.
One of the key features of MOGO is its quick loan approval process.
The company prides itself on being able to complete approvals often within 24 hours, which is crucial for customers who need immediate access to funds.
Additionally, MOGO offers flexible repayment terms, allowing borrowers to choose options that best fit their financial situations, typically ranging up to 60 months.
MOGO emphasizes a customer-centric approach, providing support throughout the loan process and ensuring that borrowers fully understand their options.
The company also collaborates with trusted vehicle dealerships to facilitate the purchase of vehicles for their customers.
Ownership
MOGO is part of Mogo Auto Limited, which is a subsidiary of the Eleving Group.
The Eleving Group is a financial services company that operates across various regions, focusing on providing asset financing and other financial products.
Mogo Auto Limited was established to specifically cater to the growing demand for vehicle financing in emerging markets.
Eleving Group, the parent company, has a diversified portfolio and has attracted significant investments, contributing to its valuation of around $1 billion.
While MOGO is headquartered in Kenya, it operates in several other countries across Africa and Eastern Europe, adapting its services to meet local market needs.
Scandals
MOGO has been embroiled in several controversies that have raised concerns among motorcycle owners and operators.
Many motorcycle owners have reported that after repaying their loans, they found their motorcycles missing. In some cases, the motorcycles were allegedly repossessed by MOGO without proper notification or justification.
Additionally, there have been claims that MOGO has not provided necessary documentation, such as logbooks, to the owners after they completed their payments.
Boda boda operators (motorcycle taxi drivers) often rely on financing from companies like MOGO to acquire motorcycles.
However, reports suggest that MOGO may charge high-interest rates and fees, making it difficult for operators to fully own their motorcycles even after making substantial payments.
Some operators claim that the terms of the loans are not transparent, leading to financial strain and exploitation.
There have also been allegations that MOGO has pressured clients to make payments in U.S. dollars rather than local currency.
When motorcycles are reported stolen or repossessed, many owners have expressed frustration over MOGO’s lack of support in recovering their vehicles.
Fined
MOGO was recently fined Ksh 10.9 million by the Competition Authority of Kenya (CAK) for engaging in misleading loan practices and unconscionable conduct.
The penalty follows investigations initiated by complaints from four customers who reported issues such as altered loan terms and excessive charges.
Additionally, MOGO is required to refund a total of Ksh 344,939 to these customers for overpayments related to currency discrepancies and inflated interest rates.
The company was also instructed to refrain from such practices in the future and resolve any pending complaints promptly.
