Court rules Mogo charged its client exorbitant interests
By Zipporah Ngwatu, June 6, 2026Mogo Auto Limited, a lender, has suffered a blow after a Thika small claims court ruled that it charged its client, Aziz Daniel Odoyo, exorbitant interest on a Ksh400,000 loan he acquired from them.
Mogo, through a statement of claim dated October 27, 2025, moved to the Small Claims Court seeking a judgement against Odoyo in the sum of Ksh677,381 together with interest and costs of the suit.
According to court documents, Mogo alleges that on June 7, 2022, they entered into an asset financing agreement with Odoyo whereby it advanced him a loan facility of Ksh400,000.
They further state that Odoyo made payments amounting to Ksh299,369 before defaulting and that the security allegedly went missing, thereby frustrating its ability to exercise its right of sale and recover the outstanding sums.
Consequently, Mogo, in its claim, contends that Odoyo presently owes it a whopping Ksh677,381, meaning the client should pay Ksh492,132 as the unpaid principal for the Ksh400,000 loan.
Court unable to understand how the figure was arrived at
In a ruling delivered by the Honourable Jamlick Muriithi Mwenda on June 2, 2026, the court stated that it is unable to understand how the claimant (Mogo) arrived at the figure they are seeking to be paid.
Honourable Muriithi further stated that he finds that the in duplum rule applies to Mogo, and therefore the total interest recoverable shall not exceed the principal amount advanced.
“On whether the claimant is entitled to the reliefs sought, this Court finds that the interest charged was exorbitant. An effective interest rate of 86.4 per cent, exclusive of additional charges, is nothing short of exploitative,” the court ruled.
However, the court acknowledged that the respondent (Odoyo) remains indebted to Mogo, and therefore the claimant (Mogo) cannot be denied recovery altogether.
Court order on outstanding Mogo loan
The court has ordered Odoyo to pay the remaining loan as per the agreement, noting that he had already paid Mogo Ksh299,367, and dismissed Mogo’s claim seeking to have him be compelled to pay more.
“Judgement is hereby entered in favour of the claimant (Mogo), as against the respondent (Odoyo), for Ksh100,631. That interests on Ksh100,631 shall accrue at the court’s rate from the date of the last payment of the loan by the respondent (Odoyo) until payment in full,” the court ruled.