Financial services firm Mogo has announced that it will extend Ksh.7 billion worth of credit to small businesses and individuals running projects with a potential to generate income and increase productivity.
Under-banked Kenyans excluded from financial systems are targeted with flexible loan terms to help create new opportunities and support the growth of small businesses, which are the backbone of the Kenyan economy.
Targeted borrowers will also benefit from longer repayment periods and the lowest monthly payments, which will allow borrowers to focus on their financial or personal growth.
Mogo Kenya country manager Domas Mineikis said productive lending will bridge the gap in financial inclusion in the country by increasing access to credit to individuals and groups that have been traditionally excluded from the formal financial system.
“As a leader in the financial services sector, we strive to use our resources and capacity to help shape a better future and contribute to progress in the country. This new credit facility aligns with our ling-held commitment to significantly elevate small businesses in the markets we serve,” said Mr. Mineikis.
In Kenya, MSMEs account for over 90 per cent of all businesses, forming a critical component of its economy.
However, many of these businesses face challenges accessing credit from traditional financial institutions due to factors such as lack of collateral, long loan processing time, insufficient credit history, or high interest rates.
“Mogo’s productive lending addresses these challenges by providing MSMEs with quick access to affordable credit. This boosts entrepreneurship, promotes job creation, and drives economic growth,” stated Mr. Mineikis.
