Industry generates an estimated Sh660 billion annually. Mogo Kenya deputy country manager Branton Mutea, customer Joseph Ng’ang’a and Mogo head of communications Valerie Kenyanito during the Mogo @7 celebrations/ HANDOUT Four out of every five motorcycle loans issued are taken specifically for income-generating purposes, a new report by Mogo shows.
This highlights how access to affordable asset financing is helping thousands of young Kenyans transition into entrepreneurship. The findings come as the motorcycle and smartphone financier announced its loan portfolio has surpassed Sh44 billion after seven years in Kenya, underscoring the growing role of asset-backed lending in supporting the country's informal economy, amid shrinking disposable incomes and tighter access to conventional credit.
Households and small businesses are grappling with squeezed incomes and limited access to traditional bank credit, which is denying the majority financial muscles for one-off purchases, with ‘buy now-pay later plans becoming concrete financing plan which is transforming livelihoods.
According to a report by the firm, it has helped create over 1,800 jobs, and establishing a network of more than 2,000 business partners over the last seven years. The firm, which has expanded into the region, supports more than 500,000 Kenyans who access productive assets that are creating jobs, supporting entrepreneurship and strengthening livelihoods across the country.
The company's financing has primarily supported Kenya's informal sector, where access to productive assets such as motorcycles, smartphones, vehicles and logbook loans enables entrepreneurs to generate income, grow businesses and improve household livelihoods.
"Over the last seven years, we have focused on giving Kenyans access to productive assets that generate income and improve lives. We are proud that our financing continues to create opportunities for entrepreneurs, strengthen small businesses and contribute to Kenya's economic growth," said Branton Mutea, deputy country manager at Mogo Kenya.
Motorcycle financing remains Mogo's largest business, reflecting the critical role the sector plays in Kenya's economy. Speaking during the anniversary celebrations, Digital Financial Services Association of Kenya (DFSAK) chairman, Kevin Mutiso, said financing productive assets create lasting economic value because it enables people to increase their income rather than credit consumption.