Africa-Press – Kenya. Mogo, East Africa’s leading vehicle and smartphone financier, has secured Sh800 million in local funding from two Kenyan banks—I&M Bank and Ecobank—to expand its operations in Kenya.
The funding will support income generation for individuals and small entrepreneurs through motorcycle and car ownership, while also improving digital inclusion through smartphone financing.
This was followed by the successful launch of Mogo’s two-year bond programme by Dry Associates Investment Bank, targeting both institutional and private clients in Kenya.
The programme aims to raise Sh1.5 billion and is secured by Mogo’s European parent, the Eleving Group, as well as loan collateral.
“We are pleased to have supported Mogo Kenya in mobilising long-term local funding to scale its asset financing operations across the country. Financing productive assets such as motorcycles and vehicles directly supports entrepreneurship, employment and income generation, particularly within the informal and SME sectors,” said James Dry, managing director, Dry Associates Investment Bank.
From a capital markets perspective, Mogo’s bond programme is a strong example of how well-structured, local-currency instruments can meet investor demand, while contributing to the continued growth and depth of Kenya’s domestic bond market, Dry noted.
According to Viffa Consult report: Kenya’s New Boda-boda boom: Thriving societies, growing economies and powering green transition report, the boda-boda sector generates around Sh660 billion annually, contributing approximately 4.4 per cent to Kenya’s GDP, and employs more than 2.5 million people.
Mogo in a statement said it is pleased to have secured local funding to support the informal economy sector, which is crucial for agriculture, education, healthcare, e-commerce and overall mobility between rural and urban areas.
“We see strong demand for our services, with more boda-boda riders choosing to own their motorcycles instead of renting them. This additional capital allows us to finance more motorcycles and support riders on their journey to ownership,” Mogo Kenya deputy country manager, Branton Mutea, said.
“Last year, we expanded our network by opening 40 new branches, closing at 80 nationwide, making financing more accessible. This funding will also help us create new jobs and contribute to the broader economy.”
With this latest capital injection, Mogo Kenya funding mix now stands at 60 per cent local funding and 40 per cent international funding.
In addition, more than 80 per cent of the company’s funding is now denominated in Kenyan shillings, reducing foreign exchange risk and strengthening the company’s long-term sustainability in issuing loans denominated in Kenya Shillings and enhancing transparency and affordability for customers.
“Access to affordable credit remains essential for individuals and small entrepreneurs seeking to improve their livelihoods. As Ecobank, we are committed to enabling more Kenyans to progress into productive asset ownership, while enhancing financial and digital inclusion,” said Cyprian Rono, director, corporate banking, Kenya and EAC, Ecobank.
“Our support to Mogo reflects our confidence in the transformative potential of asset financing, especially within the MSME sector, which is a major driver of employment and income generation across the country.”
Commenting on the deal, I&M Bank director for retail and business banking Shameer Patel said: “Our partnership with Mogo Kenya aligns perfectly with I&M Bank’s commitment to driving financial inclusion and supporting the MSME sector, the lifeblood of the Kenyan economy.”
Through the Sh500 million facility, the partnership, Patel said, is bridging the financing gap by providing innovative last-mile solutions that empower micro-entrepreneurs and boda-boda riders to acquire productive assets, enhance their livelihoods and create jobs.
“It reinforces our belief that structured, local-currency financing is key to building a resilient financial ecosystem that serves every Kenyan,” Patel said.
Mogo Kenya is a financial services company providing asset financing solutions, specialising in affordable loans for cars, boda-bodas, tuk-tuks, and smartphones, as well as logbook loans for customers who already own vehicles and check-off loans for government employees.
Founded in 2018, it currently employs at least 1,500 people across 88 branches. It has partnered with with more than 200 vehicle dealerships nationwide.
