Four out of every five motorcycle loans issued are taken specifically for income-generating purposes, a new report by Mogo shows.
This highlights how access to affordable asset financing is helping thousands of young Kenyans transition into entrepreneurship.
The findings come as the motorcycle and smartphone financier announced its loan portfolio has surpassed Sh44 billion after seven years in Kenya, underscoring the growing role of asset-backed lending in supporting the country’s informal economy, amid shrinking disposable incomes and tighter access to conventional credit.
Households and small businesses are grappling with squeezed incomes and limited access to traditional bank credit, which is denying the majority financial muscles for one-off purchases, with ‘buy now-pay later plans becoming concrete financing plan which is transforming livelihoods.
According to a report by the firm, it has helped create over 1,800 jobs, and establishing a network of more than 2,000 business partners over the last seven years.
The firm, which has expanded into the region, supports more than 500,000 Kenyans who access productive assets that are creating jobs, supporting entrepreneurship and strengthening livelihoods across the country.
The company’s financing has primarily supported Kenya’s informal sector, where access to productive assets such as motorcycles, smartphones, vehicles and logbook loans enables entrepreneurs to generate income, grow businesses and improve household livelihoods.
“Over the last seven years, we have focused on giving Kenyans access to productive assets that generate income and improve lives. We are proud that our financing continues to create opportunities for entrepreneurs, strengthen small businesses and contribute to Kenya’s economic growth,” said Branton Mutea, deputy country manager at Mogo Kenya.
Motorcycle financing remains Mogo’s largest business, reflecting the critical role the sector plays in Kenya’s economy.
Speaking during the anniversary celebrations, Digital Financial Services Association of Kenya (DFSAK) chairman, Kevin Mutiso, said financing productive assets create lasting economic value because it enables people to increase their income rather than credit consumption.
“When thousands of people gain access to productive assets, the impact extends far beyond individual households. Families can pay school fees, businesses expand, local spending increases and communities become more economically resilient,” Mutiso said.
“Productive asset financing is not just about providing credit, it is about creating sustainable livelihoods and supporting inclusive economic growth.”
According to the Boda-boda Boom: Thriving Societies, Growing Economies and Powering Green Transition report by Viffa Consult, Kenya’s boda boda industry generates an estimated Sh660 billion annually, contributes 4.4 per cent of the country’s Gross Domestic Product (GDP).
It directly supports more than 2.5 million livelihoods, making it one of the country’s largest sources of employment and last-mile transport.
The report further notes that boda boda transports approximately 40 per cent of goods within urban areas and more than 30 per cent of agricultural produce from farms to markets, underscoring their importance to trade, agriculture and household incomes.
The report also shows that riders who move from renting to owning motorcycles through asset financing can save more than Sh440,000 over five years, while 67 per cent of riders say ownership provides a much higher level of financial security than renting.
Ownership enables riders to retain more of their daily earnings, invest in businesses, educate their children and build long-term wealth.
Beyond motorcycles, Mogo has diversified its financing portfolio to support Kenya’s growing digital and transport economy.
The company has financed more than 200,000 smartphones in Kenya, enabling traders, transport operators and small business owners to participate more effectively in digital commerce.
As it enters its eighth year in Kenya, Mogo says it will continue investing in responsible financing, expanding financial inclusion and supporting entrepreneurs whose businesses contribute to employment, household incomes and sustainable economic growth across the country.
