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Fraud, predatory lending and criminal lending practices: Not only in Albania, Kredo problems in the home country too

2026-08-21 14:05:13Biznes SHKRUAR NGA REDAKSIA VOX

Fraud, predatory lending and criminal lending practices: Not only in Albania,

The Kenyan Parliament has launched an investigation into Mogo Auto, the sister company of Kredo Albania, for fraud, predatory lending and criminal lending practices. The investigation was initiated following a petition by the Motorcycle Taxi Association.

The association has asked Parliament to investigate what it describes as unfair lending and financing practices by Mogo Auto Limited.

The petition alleges that some borrowers have faced high interest rates and additional fees, failure to adequately disclose loan terms, and difficulty obtaining vehicle ownership documents even after repaying significant amounts.

It also raises questions about the seizure of motorcycles after non-payment of installments, the use of tracking devices (GPS), insurance claims, and the management of customers' personal data.

Mogo and Kredo are owned by the Eleving group, with the former serving as the asset financing arm, while the latter serves as the consumer credit institution.

From crime to crime

In October 2024, the Competition Authority of Kenya (CAK) found that Mogo Auto had violated the Competition Act after investigating complaints from four customers.

The authority concluded that the company had engaged in false and deceptive representations, as well as reckless behavior in the issuance and administration of credit products, fining it 72 thousand euros.

While the latest allegations from "boda boda" motorbike operators remain mere allegations that require parliamentary investigation, there is already a documented regulatory record showing that some customers have previously had quite serious concerns, which led to punitive measures.

The extortion scheme is the same as what this company applies in every country in the world: granting predatory loans to the poor and then seizing their survival assets or plunging them into an endless spiral of debt.

For thousands of motorcycle taxi drivers in Kenya, financing a vehicle is not just a common consumer credit decision. The motorcycle is often the only means by which the borrower generates the income needed to pay off the loan in the first place.

If the motorcycle is seized after a default on an installment, the borrower may lose not only the vehicle, but also the very opportunity to generate the money needed to repay the remaining debt.

Seizures, according to Kenyan media, are destroying thousands of poor families, plunging them deeper into poverty and a cycle of endless debt. (Kapitali.al)


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