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We are happy to announce that Mogo Kenya is now offering motorcycle loans on Mintos with annual returns of up to 13%.
Kenya is the largest economy in East Africa, a country with an established democratic political regime and most business-friendly market in the region. Alternative finance plays an important role in the country and has helped improve financial freedom.
Kenya has a vibrant and growing transportation sector with approximately 30 000 vehicles registered per month. The most notable segment is motorcycles (locally known as “boda boda”). More than 70% off all vehicles registered monthly are motorcycles and it is the fastest growing type of transport in the region.
Mogo Kenya offers financing for a wide variety of transport types and is a fast growing specialist lender in Kenya in the sector of vehicle financing, a niche underserved by traditional lenders in Kenya.
Most of the motorcycles financed by Mogo Kenya are brand new, with an average loan amount of €800 and average term of 18 months. By February 2021, the company had reached a net portfolio of €18 million, out of which €9.2 million are motorcycle loans, and served more than 15 000 customers.
Most of Mogo Kenya’s clients are self-employed or small business owners with a very good payment discipline. Typical clients include entrepreneurs willing to take out a working capital loan against their vehicle as collateral, or taxi and ride-hailing drivers on platforms such as Bolt and Uber. Being an income-generating asset, motorcycles provide employment for the rider and a steady source of income for both the rider and Mogo. Increasingly, upon successful repayment of motorcycle loan, the clients return for a loan from Mogo to upgrade to a car to use for passenger transportation.
Clients can pay their loans either in the form of bank payments or using a very popular local mobile payment solution, MPESA.
Loans issued by Mogo Kenya have a Mintos Risk Score of 7 and come with a buyback obligation as well as a Mogo Finance Group guarantee.
About Mogo Finance Group
Mogo Group was founded in 2012 in Latvia and joined the Mintos marketplace in 2015, originally offering loans for investment from Latvia. Since then, Mogo Group has placed loans on the marketplace from 14 countries in the Baltics and Central, Eastern and South-Eastern Europe. Operating regions also include the Caucasus and Central Asia, as well as Eastern Africa. Up to date, the company has issued over €650 million in secured loans and has a net loan and used car rental portfolio of over €202 million as of the end of 2020.
Some of the equity investors in Mogo Group and Mintos overlap.