Key Facts
- Investment amount
- More than Sh44 billion
- Customers supported
- More than 500,000
- Loan portfolio
- More than $300 million (about Sh44 billion)
- Branches
- More than 90 across all 36 counties
- Jobs created
- Over 1,800
- Smartphones financed
- More than 200,000
Background
Mogo Kenya, a regional motorcycle and smartphone financier, has injected more than Sh44 billion into Kenya's economy over the past seven years. The company says this investment has supported more than 500,000 Kenyans in accessing productive assets, contributing to job creation, entrepreneurship, and livelihoods.
A report by Viffa Consult, titled 'Boda-boda Boom: Thriving Societies, Growing Economies and Powering Green Transition', estimates that Kenya's boda boda industry generates Sh660 billion annually. This contributes 4.4 per cent of the country's Gross Domestic Product (GDP) and directly supports more than 2.5 million livelihoods, making it a major source of employment and last-mile transport.
Current Situation
Since entering Kenya in 2019, Mogo has built a loan portfolio of more than $300 million (about Sh44 billion), expanded to all 36 counties with more than 90 branches, created over 1,800 jobs, and established a network of more than 2,000 business partners. The company's financing primarily supports Kenya's informal sector, enabling entrepreneurs to acquire motorcycles, smartphones, vehicles, and logbook loans.
Motorcycle financing remains Mogo's largest business. Four out of every five motorcycle loans issued by the company are taken for income-generating purposes. The company has also financed more than 200,000 smartphones, helping traders and small business owners participate in digital commerce. Mogo has distributed more than 50,000 reflector jackets and launched SAKA, a digital platform whose emergency response system has helped recover 60 per cent of motorcycles reported stolen.
| Metric | Value |
|---|---|
| Investment in Kenya's economy | More than Sh44 billion |
| Customers supported | More than 500,000 |
| Loan portfolio | More than $300 million (about Sh44 billion) |
| Counties with presence | All 36 |
| Branches | More than 90 |
| Jobs created | Over 1,800 |
| Business partners | More than 2,000 |
| Smartphones financed | More than 200,000 |
| Reflector jackets distributed | More than 50,000 |
| Motorcycles reported stolen recovered | 60 per cent |
Impacts
The injection of Sh44 billion has supported more than 500,000 Kenyans, with significant effects on the boda boda sector. According to the Viffa Consult report, boda boda transports approximately 40 per cent of goods within urban areas and more than 30 per cent of agricultural produce from farms to markets, underscoring their importance to trade and agriculture.
The report also indicates that riders who move from renting to owning motorcycles through asset financing can save more than Sh440,000 over five years. Additionally, 67 per cent of riders say ownership provides a much higher level of financial security than renting. Ownership enables riders to retain more daily earnings, invest in businesses, educate children, and build long-term wealth.
Leaders from Kenya's boda boda sector credit Mogo with helping thousands of young people move into self-employment. Many riders who have completed motorcycle repayments have progressed to financing cars, while others have used logbook loans to pay school fees, expand businesses, and invest in property.
Future Outlook
Scenario analysis: The possibilities below are not certain predictions.
Mogo says it will continue investing in responsible financing, expanding financial inclusion, and supporting entrepreneurs. The company looks forward to reaching the one million served customers milestone.
If Mogo maintains its current growth trajectory, it could further expand its loan portfolio and customer base, potentially increasing its contribution to Kenya's economy. However, the actual impact will depend on economic conditions and the company's ability to manage risks.
The boda boda sector's growth may continue to drive demand for asset financing, but challenges such as road safety and regulatory changes could affect future expansion. The company's focus on financial literacy and customer resilience may help mitigate some of these risks.
Source: standardmedia.co.ke
