Asset financier Mogo Kenya has secured Sh800 million in local debt financing from I&M Bank and Ecobank, alongside the launch of a Sh1.5 billion two-year bond programme, as it moves to expand asset-backed lending to small and micro enterprises (SMEs) across the country.
The capital will support the scaling of motorcycle, car and smartphone financing, targeting entrepreneurs in the boda boda and informal transport sectors who rely on productive assets to generate income.
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The bond programme, arranged by Dry Associates Investment Bank, is backed by Mogo’s European parent company Eleving Group as well as underlying loan collateral. It is targeting Sh1.5 billion from institutional and private investors, offering exposure to local-currency, asset-backed lending in Kenya’s SME segment.
The expansion comes as lenders increasingly recognize the economic weight of Kenya’s boda boda sector. According to a report by Viffa Consult, the sector generates approximately Sh660 billion annually, accounting for 4.4 percent of Kenya’s GDP and supports more than 2.5 million livelihoods.
Mogo says market demand is shifting, with more riders opting for ownership instead of rental models in pursuit of 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 Branton Mutea, Deputy Country Manager at Mogo Kenya. “This additional capital allows us to finance more motorcycles and support riders on their journey to ownership.”
Beyond expansion, the funding signals a deliberate move toward reducing foreign exchange exposure.
Following the transaction, Mogo’s funding mix shifts to 60 percent local and 40 percent international sources, with more than 80 percent of its liabilities now denominated in Kenyan shillings. The shift aligns its balance sheet more closely with its predominantly shilling-based loan book.
“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 at Dry Associates Investment Bank.
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