A financial earthquake is about to rock Kenya’s credit market as thousands of furious Mogo Auto customers prepare to join a massive class action lawsuit that could bring down the once-booming microlender.
The Latvian-owned company, which built its empire on financing cars and motorbikes for ordinary Kenyans, now stands accused of running what victims are calling “a calculated theft operation disguised as lending.”
Borrowers across the country are coming out in droves, narrating horror stories of crippling debts, secret charges, and ruthless repossessions. What was once pitched as a lifeline for hustlers trying to own boda bodas and cars has allegedly turned into a merciless debt trap.
At the heart of the storm are three borrowers—Caroline Nderitu, Wilson Gikonyo, and Joseph Wangari—who have filed a petition before the High Court seeking to represent all other victims.
Their explosive court documents paint Mogo Auto as a serial offender running a predatory lending empire built on deception, intimidation, and despair.
“The company’s loan contracts are misleading, deceptive, and unconscionable,” the trio claim through their lawyer, Simon Mburu.
“They hide the true cost of credit, apply foreign currency indexing on local loans, inflate insurance premiums, and repossess vehicles without due process. It is nothing short of financial fraud masquerading as credit.”
The borrowers allege that Mogo’s contracts are deliberately structured to confuse and trap customers, most of them low-income earners and boda boda operators. Many signed up believing they were getting affordable loans, only to find themselves facing ballooning repayments, constant threats of repossession, and harassment from recovery agents.
The case, now before Justice Dr. Freda Mugambi, has sent shockwaves through Kenya’s microfinance sector.
The judge directed that Mogo Auto be served with court papers ahead of a December hearing, paving the way for what could become one of the largest consumer lawsuits in Kenya’s history.
Lawyer Mburu has urged the court to authorize a national notice inviting all affected customers to join the suit, warning that “the number of victims runs into the thousands, scattered across every county in Kenya.” If granted, the notice could unleash a wave of plaintiffs capable of crippling Mogo’s Kenyan operations.
The case has reignited public anger over the Competition Authority of Kenya’s 2024 decision that fined Mogo Sh10.8 million for false and misleading lending practices.
Despite that fine, the company allegedly continued its controversial methods—charging hidden fees, manipulating interest rates, and repossessing assets without legal notice.
“Mogo’s model is built on deception,” said one furious borrower in Nakuru. “They promise you freedom and give you bondage. You pay and pay, but the loan never ends.”
Consumer watchdogs have now joined the chorus, calling Mogo’s system “a predatory pyramid built on poverty.” Civil groups say the lawsuit could be a turning point for thousands of Kenyans trapped in exploitative logbook and boda boda loans.
Financial analysts warn that if the suit succeeds, it could not only force Mogo to refund millions to borrowers but also collapse its entire business in Kenya. “This is an existential threat,” one banking expert told The Informant. “If the court certifies the class and rules against Mogo, it will set a precedent that shakes the entire non-bank lending sector.”
Meanwhile, social media is ablaze with testimonies. Angry customers are sharing photos of seized motorbikes, repossessed cars, and debt collection letters splashed with red ink. Calls for justice are growing louder, with hashtags like #StopMogo and #MogoExposed trending across platforms.
From Nairobi to Kisumu, Nyeri to Mombasa, the message from victims is clear: “We were robbed in daylight.”
As the countdown to December’s court showdown begins, Mogo faces its most perilous moment yet—its reputation shredded, its practices exposed, and its customers turning against it in what could become the biggest financial uprising Kenya has seen in years.
If justice prevails, this could mark the end of Mogo’s reign of financial terror—and the dawn of accountability in Kenya’s murky lending industry.
