NAIROBI, Kenya, May 3 – Financial services firm Mogo will extend Sh7 billion worth of credit to small businesses and individuals running projects with the potential to generate income and increase productivity.
It targets underbanked Kenyans who have been for a long period of time excluded from the mainstream financial system.
Flexible loans lent to them seek to 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 the gap in financial inclusion in the country by increasing access to credit for 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,” Mineikis said.
“This new credit facility aligns with our ling-held commitment to significantly elevate small businesses in the markets we serve,” he said.
In Kenya, MSMEs account for over 90 percent 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 times, 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 percent of Mogo’s active customers are self-employed, and around 70 percent of them are unbanked customers seeking financing opportunities.
