Published on 26/10/2025
Borrowers claim Mogo Auto Limited has been running a predatory lending racket, charging exorbitant interest rates, concealing real credit costs, and repossessing vehicles without due process.
Three petitioners, Caroline Nderitu, Wilson Gikonyo and Joseph Wangari, have become the faces of the revolt.
They accuse the Latvian-owned lender of crafting “deceptive and unconscionable” contracts that trap consumers in an endless cycle of debt.
The trio’s petition, filed through lawyer Simon Mburu, seeks to represent all Kenyans who have borrowed from Mogo under similar terms.
“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 filing.
The borrowers allege that Mogo’s model systematically targets vulnerable Kenyans, particularly boda boda riders and low-income motorists, by offering what appears to be affordable financing, only to ambush them later with hidden fees, inflated insurance premiums, and harsh repossession orders.
Court documents reveal that Mogo has been bundling compulsory insurance premiums into loans, charging compounded interest rates beyond market limits, and repossessing assets without lawful notice.
The petitioners argue that the lending model violates principles of fair dealing, equity, and commercial transparency.
The uproar follows the Competition Authority of Kenya’s 2024 ruling that fined Mogo Ksh 10.8 million for engaging in false and misleading lending conduct, evidence the petitioners say demonstrates a pattern of predatory behaviour.
The firm allegedly continued its controversial operations afterward, leaving scores of borrowers destitute and their property seized.
Lawyer Mburu has now urged the court to order a national notice inviting all Mogo clients to join the class action suit, warning that “the number of affected borrowers runs into the thousands.”
He argues that the sheer scale of the alleged exploitation makes a collective lawsuit the only viable route to justice.
Across social media, outrage is spreading fast.
Borrowers are sharing horror stories of loans that ballooned overnight, motorcycles confiscated in broad daylight, and families left stranded after repossessions. Consumer rights activists have joined the fray, accusing Mogo of operating a debt trap business model dressed up as microfinance.
Justice Dr. Freda Mugambi, who is presiding over the matter, directed that Mogo Auto be served with court documents ahead of a December hearing. The judge stopped short of certifying the case as urgent but acknowledged the widespread interest it has generated.
As the storm gathers, financial analysts warn that the case could trigger a domino effect across Kenya’s rapidly growing logbook and asset-financing sector. “This is bigger than Mogo, it is a reckoning for all non-bank lenders exploiting the informal economy,” said one legal expert.
For now, the message among borrowers is clear and defiant: “Join the suit, fight back, and expose the fraud.”
If the class action succeeds, it could open the floodgates for thousands of claims and force one of Kenya’s most aggressive lenders to face the music in a courtroom packed with victims.
The battle lines are drawn, and Mogo may soon confront the wrath of the very customers who once believed it was their ticket to economic freedom.
