Asset financier, MOGO, has announced that all its loan repayments will now be denominated in Kenyan shillings, as opposed to previously where foreign currencies mainly the dollar was used.

The change aims to protect customers from the Shilling's fluctuation fluctuations in foreign currencies. The company provides asset financing options, including car financing, car logbook loans, boda boda financing, boda boda logbook loans, tuk-tuk financing, and tuk-tuk logbook loans, said.

According to management, the switch is a relief to customers as it stabilises their monthly repayments.

"This adjustment is designed to alleviate the extra burden on customers who have faced higher payments when the shilling weakens against other foreign currencies. It also offers greater convenience, as most customers do not hold accounts in foreign currencies," Head of Car Financing, Stephen Mwangi, said.

The firm has further abolished application fees and reduced the loan repayment period for car financing and logbook loans from thirty-six to twenty four months, lowering the total interest customers pay for their loans.

Fresh car, boda boda and tuk-tuk financing assist customers in new purchases, while logbook loans support those who already own vehicles but need funds without selling their assets.

Over the past five years, MOGO has disbursed Sh20 billion in boda boda and motor vehicle loans, benefiting over 120,000 Kenyans with affordable financial products.

The firm is also focused on financing e-bikes and electric three-wheelers to promote e-mobility adoption in Kenya.

“We have listened to customer and market feedback, especially considering recent economic challenges and the significant depreciation of the Kenyan Shilling against foreign currencies. This shift aims to ease payment difficulties and prevent negative impacts on customers' credit scores,” Mwangi added.