Financial services firm Mogo has said it will extend Sh7 billion worth of credit to small businesses and individuals running projects with a potential to generate income and increase productivity.
Mogo Kenya Country Manager Domas Mineikis said productive lending will bridge the gap in financial inclusion by increasing access to credit to individuals and groups that have been traditionally excluded from the formal financial system.
“As a leader in the financial services sector, we strive to use our resources and capacity to help shape a better future and contribute to the country’s progress,” he said.
“This new credit facility aligns with our long-held commitment to significantly elevate small businesses in the markets we serve.”
Small enterprises account for over 90 per cent of all businesses in Kenya, forming a critical component of its economy.
However, many of these businesses face challenges accessing credit from financial institutions due to factors such as lack of collateral, long loan processing time, insufficient credit history, or high interest rates.
“Mogo’s productive lending addresses these challenges by providing MSMEs with quick access to affordable credit. This boosts entrepreneurship, promotes job creation, and drives economic growth,” Mineikis said.
Targeted borrowers will benefit from longer repayment periods and the low monthly payments through the firm’s best price guarantee brand promise.
Up to 89 per cent of Mogo’s active customers are self-employed.