Kenya’s Competition Authority (CAK) has fined Mogo Kenya, a subsidiary of Baltic fintech Eleving Group, $84,120 for misleading customers and altering loan terms without consent. The fine, although modest, highlights ongoing unethical practices among digital lenders, despite Kenya’s 2022 regulatory crackdown on predatory lending.

Key issues include:

• Unethical Loan Term Adjustments: Mogo Kenya secretly changed loan terms, increasing interest rates without informing clients and charged extra fees by denominating loans in USD, while disbursing in Kenyan shillings.
• Consumer Protection Laws Ignored: Despite new regulations mandating transparency and privacy protections, many digital lenders, including Mogo, continue to flout the law.
• Industry-Wide Problem: Other lenders like Platinum Credit and Premier Credit face similar complaints for unethical practices, raising concerns about the effectiveness of regulations.

Mogo Kenya is now required to refund overcharged amounts and has been issued a warning by CAK. Despite the company’s denials, this incident sheds light on a broader issue of unethical behavior among Kenya’s digital lenders, who have a long history of exploiting loopholes for profit.

This fine marks another step in Kenya's ongoing effort to bring accountability and fairness to the digital lending space, as the country attempts to clean up a market once rife with privacy violations and predatory lending tactics. Consumers are advised to stay vigilant and well-informed about the terms of any digital loans.

This regulatory action highlights the need for stronger oversight as digital lenders continue to exploit vulnerabilities in Kenya's financial landscape.

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