Nairobi — The Central Bank of Kenya has now approved Mogo Kenya to provide digital credit services in the country.

Mogo assured that the approval will now enable the company to provide affordable financing to MSMEs so as to enable them to acquire more assets and accelerate financial inclusion.

In a statement, Mogo further assured that the step will also enable the company to provide financing to individuals who were previously denied access to funds by banks and other credit institutions.

"Mogo is a microfinance firm offering vehicle financing products, such as vehicle loans, allowing customers to acquire vehicles from third parties. This provides mobility to individuals previously denied access to funds by banks and other credit institutions," it stated.

CBK said that it has been working with other regulators and agencies in the licensing process, such as the Office of the Data Protection Commissioner, so as to ensure that the company's operations are in line with the law.

"The focus of the engagements has been, inter alia, on business models, consumer protection, and the fitness and propriety of proposed shareholders, directors, and management. This is to ensure adherence to relevant laws and, importantly, that the interests of customers are safeguarded."

According to Mogo Kenya Country Manager Domas Mineikis, the company has provided loans to more than 120,000 Kenyans in the past half a decade, which have been crucial in enabling individuals to engage in productive economic activities.

"Since starting operations in Kenya five years ago, Mogo has lent KSh 20 billion for boda boda and motor vehicle loans and provided affordable financial products to more than 120,000 Kenyans all of whom are engaged in productive economic activities," added Mr. Mineikis.