NAIROBI, Kenya, Jul 14 – The Competition Authority of Kenya (CAK) has intensified scrutiny of Mogo Auto Limited after the lender emerged among financial institutions attracting the highest number of consumer complaints over alleged predatory lending practices, including foreign exchange-linked loans, ballooning balances and repeated repossessions.
According to the Authority’s 2024/25 Annual Report, Mogo is among the firms that featured in complaints lodged by borrowers who claimed they continued to owe substantial amounts despite making repayments exceeding the principal borrowed, with some alleging their loans were indexed to the US dollar even though they were disbursed in Kenya shillings.
The report highlights a series of consumer disputes involving Mogo, including borrowers who alleged unexplained loan balances, excessive interest charges, arbitrary repossessions of motor vehicles and motorcycles, and repayment obligations that escalated due to currency fluctuations.
One complainant told the Authority they borrowed Sh355,000 but had repaid more than Sh700,000 before being informed they still owed money because the loan was denominated in US dollars.
Another borrower who secured a Sh550,000 loan claimed to have repaid Sh530,000 but was later asked to settle more than Sh750,000 after exchange rate adjustments were applied.
While several of the complaints remain under investigation, the Authority notes that in a number of earlier cases its interventions secured refunds and other consumer remedies, underscoring its growing enforcement role in the financial services sector.
“We have noted a 37 percent increase in consumer complaints lodged with the Authority, increasing from 668 cases in FY2023/24 to 915 cases in FY2024/25.”
“This surge is attributable to sustained efforts to raise awareness among consumers about their rights and obligations, and the Authority’s robust complaints-handling mechanisms.”
The report stops short of finding Mogo liable for wrongdoing in the pending matters.
However, the repeated complaints place the lender at the centre of CAK’s broader efforts to curb unfair consumer practices in Kenya’s fast-growing digital and asset-backed lending market.
Overall, consumer complaints handled by the Authority rose by 37 percent during the financial year, with CAK saying it secured Sh21.4 million in refunds, repairs and replacements for affected consumers while signaling tougher enforcement against businesses found to engage in unfair market conduct.
Under its new strategic plan, the Authority says it will scale up investigations into consumer rights violations and anti-competitive practices across key sectors of the economy.
