Financial services firm, Mogo, has secured Sh800 million loans from I&M Bank and Ecobank to expand financing for assets such as motorcycles, vehicles, and smartphones in Kenya, targeting underbanked individuals and small businesses.
The fund is expected to boost Mogo at a time when demand for credit-backed asset financing is rising among informal sector workers, particularly boda boda riders and micro-entrepreneurs who are seeking ownership instead of daily rental arrangements.
Mogo said the capital will be deployed primarily towards financing motorcycles and vehicles, which remain critical tools of trade for millions of Kenyans operating in the transport, delivery, agriculture, and informal commerce segments.
“Mogo has secured Sh800 million in local funding from two Kenyan banks, I&M Bank and Ecobank, to expand its operations in Kenya,” said the firm in a statement.
“The funding will support income generation for individuals and small entrepreneurs through motorcycle and car ownership, while also improving digital inclusion through smartphone financing.”
Motorcycle ownership has increasingly emerged as a pathway to income stability as riders move away from high daily rental fees that erode earnings and limit long-term financial progress.
Access to credit, however, remains a major constraint, with many riders and small traders excluded from traditional bank lending due to lack of collateral, formal income records, or credit history.
Mogo’s model focuses on asset-backed lending, where financed motorcycles and vehicles serve as collateral, widening access to borrowers locked out of formal credit markets.
The latest funding preceded the launch of a two-year bond programme arranged by Dry Associates Investment Bank, which targets both institutional and individual investors in Kenya and seeks to raise up to Sh1.5 billion for the asset financing firm.
The bond is secured by Mogo’s European parent company, Eleving Group, as well as the firm’s loan book.
The funding also comes after the firm significantly enhanced its physical footprint in Kenya, opening 40 new branches across the country last year.
The lender now operates more than 80 branches nationwide, reflecting continued reliance on physical presence to serve customers who remain outside digital-only financial ecosystems.
Mogo said its funding mix now stands at 60 percent local and 40 percent international financing, with more than 80 percent of total funding denominated in Kenyan shillings.
This shift reduces exposure to exchange rate volatility, which has weighed heavily on lenders and borrowers in past years amid currency swings and tighter global financing conditions.
Banks have historically struggled to profitably serve the country’s informal segment due to higher operating costs and perceived risk, as well as regulatory capital requirements tied to unsecured lending.
Partnerships between banks and specialised asset financiers are tailored towards allowing lenders to deploy capital into the sector while leveraging alternative collateral structures.
The involvement of I&M Bank and Ecobank in the Mogo deal signals growing comfort among banks in supporting asset-backed lending models linked to the informal economy.
