Why Regretful Clients Are Warning Kenyans From Ever Taking Any Loan From Mogo

Nairobi, September 8, 2025 – A wave of outrage is sweeping across Kenya as regretful borrowers issue urgent warnings against Mogo Auto Limited, a microfinance institution now infamous for predatory lending practices.

Promising easy credit and flexible terms, Mogo has instead left countless clients trapped in a cycle of debt, repossessions, and financial ruin.

With mounting complaints and fresh testimonials, the company’s unethical tactics despite a Ksh 15 million fine from the Competition Authority of Kenya (CAK)—continue to devastate livelihoods.

James Omondi, a boda boda rider from Nakuru, borrowed Ksh 100,000 in 2023 to grow his business. After paying Ksh 75,000, his motorcycle was repossessed last month.

“They took my only source of income,” Omondi said. “I’m left with nothing to support my family—it’s theft in broad daylight.”

Grace Wanjiru, a single mother from Mombasa, took a Ksh 200,000 logbook loan in 2022, only to see her debt balloon due to an unagreed currency switch to US dollars. After paying Ksh 250,000, she still owes Ksh 150,000.

“They changed the terms without my consent,” Wanjiru lamented. “I fear losing my car next.”

The crisis deepens with new cases. A young man from Kisumu, who borrowed for a motorcycle in March 2022, has paid Ksh 351,700 but now faces a demand for an additional Ksh 94,215 to reclaim his logbook.

“They claim a phone call amended the contract, but I never signed anything,” he told a local outlet. “My bike is old, and I’m sinking deeper into debt while paying for repairs.”

Another victim, a borrower from Eldoret, paid faithfully for a year before his motorcycle developed mechanical issues.

After Mogo repossessed and sold it without notice, he was listed as a defaulter on the Credit Reference Bureau (CRB).

“I paid on time, and they sold my bike behind my back,” he said. “This wasn’t in the contract—where’s the justice?”

A female borrower in Nairobi, who took a Ksh 425,000 loan in 2022, paid over Ksh 700,000 in two years only to see her balance rise to Ksh 495,385.

“Their staff were rude when I asked for clarification,” she said, her voice trembling. “I’m exhausted from this endless debt trap.”

Another client reported paying Ksh 400,000 in interest over eight months on a Ksh 750,000 loan, crippled by exorbitant rates amid a weakening shilling.

The CAK’s 2024 fine for unfair terms and hidden charges has failed to deter Mogo, as parliament and social media amplify calls for action.

MPs have targeted the exploitation of boda boda riders, while users like @KenyansRise warn, “Avoid Mogo—save your assets!” With regulators under pressure to enforce stronger laws, these regretful voices highlight a stark reality: Mogo’s promises are a perilous illusion for Kenya’s vulnerable.

Watch video: cc5b9463b2d6b82d05c5d6efd950e1af53e885d9