CAK DECISION REGARDING MISLEADING REPRESENTATION AND UNCONSIONABLE CONDUCT BY MOGO AUTO LIMITED

Summary

The Authority and Mogo entered into a settlement agreement in which Mogo has been ordered to pay a penalty, remedy the complainants, amicably resolve all pending complaints, resolve future complaints within the stipulated timelines, refrain from engaging in similar conduct, and undergo consumer compliance training.

Who it affects

asset financier Mogo Auto Limited (‘Mogo’) and its customers

Deadlines

• 30 Aug 2025 — Mogo and its employees to undergo consumer compliance training

Amounts

• KES 10,851,473.20 — pecuniary penalty for violating the Competition Act CAP 504 (‘the Act’) by engaging in false and misleading representation and unconscionable conduct against its customers
• KES 344,939.00 — sum of excess amounts charged in repayment of three loan customers’ loans, and the difference in the dollar exchange rate applied during the loan issuance
• KES 2,100,000.00 — facility applied for by the first complainant
• USD 17,828.16 — the first complainant’s facility at the exchange rate of KES. 117 to USD 1
• KES 117.00 — exchange rate to USD 1
• KES 300,000.00 — facility taken by the second complainant
• KES 392,000.00 — balance indicated on the second complainant’s loan statement
• KES 310,000.00 — 50% financed by Mogo of the purchase price of a motor vehicle
• KES 517,212.00 — loan agreement entered into by the fourth complainant
• KES 726,000.00 — the fourth complainant’s facility balance
• KES 500,000.00 — final outstanding loan amount to be paid by the first complainant to Mogo
• KES 108,745.10 — excess amounts charged by Mogo to be refunded to the second complainant
• KES 80,915.00 — difference between the exchange rate applied during loan application and issuance to be refunded to the third complainant
• KES 155,279.00 — difference between the exchange rate applied during loan application and issuance to be refunded to the fourth complainant

Action required

Pay a penalty of KES. 10,851,473.20; remedy the complainants; amicably resolve all the pending complaints lodged at the Authority; resolve any future complaint within the stipulated timelines; refrain from engaging in similar conduct in future; and undergo consumer compliance training by 30th August 2025.