A financial storm is sweeping across Kenya as furious Mogo Kenya customers rally behind a historic class action lawsuit accusing the Latvian-owned microfinance firm of predatory lending, hidden fees, and illegal repossessions.
The petition, filed before the High Court in Nairobi, exposes what borrowers describe as “a well-oiled machine of exploitation” masked as a motorbike and car financing operation.
Borrowers Allege Fraudulent Lending and Concealed Costs
The lead petitioners — Caroline Nderitu, Wilson Gikonyo, and Joseph Wangari — have become the faces of a growing revolt. Represented by lawyer Simon Mburu, they claim that Mogo Auto Limited deliberately crafted deceptive contracts that trap borrowers in endless cycles of debt.
“The company’s documentation and disclosure mechanisms are deliberately misleading, hiding the true cost of credit, foreign-currency indexing, and other financial burdens,” reads part of the explosive court filing.
According to the petitioners, Mogo systematically targets low-income Kenyans — particularly boda boda riders and informal sector workers — by advertising “affordable” loans, then imposing undisclosed costs, inflated insurance charges, and harsh repossession orders.
Repossession Without Due Process and Illegal Charges
Court documents show that Mogo allegedly bundled compulsory insurance premiums into loans, charged compounded interest beyond market limits, and repossessed vehicles without legal notice.
Lawyer Mburu argues that such actions violate Kenya’s Consumer Protection Act and Fair Administrative Action Act, which safeguard borrowers from misleading and oppressive financial contracts.
The petitioners want the High Court to compel Mogo to refund unlawfully obtained funds, review its contracts, and publicly disclose the true cost of its loans.
Competition Authority Already Fined Mogo
The lawsuit follows the Competition Authority of Kenya’s (CAK) 2024 ruling that fined Mogo KSh 10.8 million for false and misleading lending practices.
Borrowers say this penalty confirms a pattern of exploitation, accusing the lender of continuing its questionable operations even after the government sanction.
“This is not an isolated case. It’s a structural fraud — a system designed to profit from desperation,” said lawyer Mburu, who has petitioned the court to issue a national notice inviting all affected borrowers to join the class action.
Thousands of Borrowers Mobilize Nationwide
Across Kenya, outrage is spreading rapidly. Online forums and Facebook groups are filling up with testimonials from customers describing how their loans ballooned overnight.
Many report that Mogo agents seized motorcycles in broad daylight, leaving families stranded and livelihoods destroyed.
Consumer rights activists have joined the movement, calling Mogo’s model “a debt trap disguised as empowerment.”
“Join the suit, fight back, and expose the fraud,” reads one viral post that has attracted hundreds of responses.
Court Proceedings and Judge’s Directives
The case, presided over by Justice Dr. Freda Mugambi, has been listed for a December hearing. The judge directed that Mogo Auto Limited be formally served with court papers, though she stopped short of certifying the matter as urgent.
However, she acknowledged the “significant public interest” surrounding the case, signaling that the court may treat it as a matter of national importance if the evidence warrants.
Wider Implications for Kenya’s Microfinance Sector
Legal and financial analysts say the Mogo case could redefine lending accountability in Kenya’s fast-growing logbook, boda boda, and asset-financing industries.
“This is bigger than Mogo,” noted one Nairobi-based financial lawyer. “It’s a wake-up call for the entire non-bank lending ecosystem that thrives on weak regulation and opaque contracts.”
If successful, the class action could pave the way for mass compensation claims, stricter oversight of microlenders, and stronger borrower protections under Kenya’s financial laws.
A Fight for Economic Justice
For now, the message among borrowers is one of unity and defiance. Thousands are mobilizing to join the case, viewing it as a fight not just against Mogo, but against a broader culture of financial exploitation.
“We believed Mogo was our ticket to economic freedom,” said one petitioner. “Instead, they took our savings, our bikes, and our dignity.”
As the High Court prepares to hear the petition, all eyes are on Mogo Auto Limited, whose lending practices could soon be tested in a courtroom packed with the very people it once called customers.