Asset financing firm Mogo Auto Limited is facing a representative lawsuit from three Kenyans over alleged predatory lending practices that have reportedly pushed thousands of Kenyan borrowers into financial hardship.

The trio, Caroline Nderitu, Wilson Mbogo Gikonyo, and Joseph Muraya Wangari, have accused the lender of imposing unfair loan terms, hidden charges, and aggressive recovery procedures that have left consumers trapped in debt.

In their affidavit filed before the High Court, Nderitu, the 1st Applicant, said she had “directly experienced the lending and recovery practices complained of,” describing them as oppressive and financially devastating.

She argued that Mogo’s loan documents were “misleading and deceptive,” failing to disclose the true cost of credit and the implications of dollar-indexed repayments.

Gikonyo, the 2nd Applicant, told the court that he was subjected to “identical repayment and repossession procedures” as thousands of other borrowers.

He said Mogo’s lending model “imposed exorbitant compound interest rates far exceeding market limits,” leaving many borrowers unable to recover their vehicles even after repaying substantial amounts.

The 3rd Applicant, Wangari, who swore the supporting affidavit, alleged that Mogo’s conduct “constitutes a pattern of predatory lending, targeting vulnerable consumers with misleading promises of affordable financing.”

According to Wangari, the company bundled compulsory insurance premiums and repossessed assets “without due process,” practices he termed exploitative and unlawful.

The applicants are seeking the court’s permission to institute a representative suit on behalf of all affected consumers and to have Mogo’s loan agreements and recovery model declared unconscionable, null, and void.

They also want injunctions issued to stop further repossessions and restitution of funds charged under the impugned terms.

The court has directed that the petition be served and responded to within 15 days of service.

The parties were further ordered to file and exchange skeleton submissions, each limited to seven pages within 15 days, beginning with the applicants.

The matter is set for mention on December 15, 2025.

This comes a year after the Competition Authority of Kenya (CAK) fined Mogo Sh10.8 million in October 2024 for “false, misleading, and unconscionable lending,” yet the applicants claim the firm has continued with the same practices in disregard of consumer protection laws.

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Predatory lending has recently been on the rise in Kenya, drawing growing scrutiny from Parliament and regulators.

In September, a petition filed by lawyer Allen Waiyaki Gichuhi urged Parliament to tighten control over interest rates and amend the Consumer Protection Act (Cap. 501) to enforce the in duplum rule, which caps interest on non-performing loans to an amount equal to the outstanding principal.

While forwarding the petition, National Assembly Speaker Moses Wetangula observed that lenders continue to charge interests and penalties that exceed the loan principal, a violation of Article 46 of the Constitution, which guarantees consumer rights.