Nairobi — Mogo Kenya has secured Sh800 million in local debt from I&M Bank and Ecobank, setting the stage for expanded lending to small and micro enterprises, particularly in the boda boda and informal transport segments.
The asset financier said the facilities will be used to scale motorcycle and car financing, as well as smartphone loans in a move anchored on deepening credit access for small entrepreneurs who rely on productive assets to generate income.
The fresh bank funding comes alongside the launch of a two-year bond programme arranged by Dry Associates Investment Bank.
The programme targets Sh1.5 billion from institutional and private investors and is backed by Mogo's European parent, Eleving Group, as well as underlying loan collateral.
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The expansion targets a segment of the economy that has increasingly turned to asset-backed credit to enter self-employment or grow small businesses.
According to a report by Viffa Consult, the boda boda sector generates about Sh660 billion annually, accounting for roughly 4.4 percent of Kenya's GDP and employing more than 2.5 million people.
The sector underpins agriculture supply chains, e-commerce deliveries, healthcare access and rural-urban mobility.
Mogo says demand is shifting from motorcycle rentals to ownership among riders seeking higher and more stable incomes.
"We see strong demand for our services, with more boda-boda riders choosing to own their motorcycles instead of renting them,"said its Deputy Country Manager Branton Mutea.
"This additional capital allows us to finance more motorcycles and support riders on their journey to ownership."
For investors, the bond programme offers exposure to local-currency, asset-backed lending in the SME segment at a time when issuers are under pressure to reduce foreign exchange risk.
"From a capital markets perspective, Mogo's bond programme is a strong example of how well-structured, local-currency instruments can meet investor demand while contributing to the continued growth and depth of Kenya's domestic bond market," said James Dry, Managing Director, Dry Associates Investment Bank.
Following the latest deal, Mogo's funding mix shifts to 60 percent local and 40 percent international sources.
The asset financier says more than 80 percent of its liabilities are now denominated in Kenyan shillings, lowering foreign exchange exposure and aligning its balance sheet with shilling-based lending.
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The lenders framed the transaction as part of a broader push to close the financing gap for micro, small and medium-sized enterprises (MSMEs), which account for the bulk of employment in Kenya but remain underserved by traditional credit.
