Mogo injects KSH.7Bn in productive lending in Kenya

Financial services firm Mogo has announced it will extend Ksh 7 billion worth of credit to small businesses and individuals running projects with a potential to generate income and increase productivity.

Underbanked Kenyans excluded from financial system and largely in far-flung areas of the country are targeted with flexible loan terms to help create new opportunities and support the growth of small businesses, which are the backbone of the Kenyan economy.

Mogo Kenya country manager Domas Mineikis, said productive lending will bridge gap in financial inclusion in the country by increasing access to credit to individuals and groups that have been traditionally excluded from the formal financial system.
“As a leader in the financial services sector, we strive to use our resources and capacity to help shape a better future and contribute to progress in the country. This new credit facility aligns with our ling-held commitment to significantly elevate small businesses in the markets we serve,” Mr.Mineikis said.

In Kenya MSMEs account for over 90% of all businesses, forming a critical component of its economy. However, many of these businesses face challenges accessing credit from traditional financial institutions due to factors such as lack of collateral, long loan processing time,
insufficient credit history, or high interest rates.
 
“Mogo’s productive lending addresses these challenges by providing MSMEs with quick access to affordable credit. This boosts entrepreneurship, promotes job creation, and drives economic growth,” he added.

Targeted borrowers will benefit from longer repayment periods and the lowest monthly payments through the firm’s best price guarantee brand promise, which allows borrowers to focus on their financial or personal growth.

Up to 89% of Mogo’s active customers are self-employed, and around 70% of them are unbanked customers seeking financing opportunities.