Court Rules That Mogo Overcharged Man on Car Loan Interest
In a ruling delivered by the Honourable Jamlick Muriithi Mwenda on June 2, 2026, the court stated that it is unable to understand how Mogo arrived at the figure they are seeking to be paid.
A small claims court in Thika has ruled that a lending facility, Mogo Auto Limited, has overcharged its customer interest on a loan granted to him for a motor vehicle.
According to court papers, on June 7, 2022, Aziz Daniel acquired a Ksh400,000 loan from Mogo but had paid Ksh299,367 before defaulting on it.
After the default, the lending facility filed a case against Aziz on October 27, 2025, seeking a judgement against Odoyo in the sum of Ksh677,381 together with interest and cost of the suit.
Mogo averred that after Aziz defaulted, 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, stated that at the time of filing the suit, Aziz owed Ksh677,381, meaning the client should pay Ksh492,132 as the unpaid principal for the Ksh400,000 loan.
In a ruling delivered by the Honourable Jamlick Muriithi Mwenda on June 2, 2026, the court stated that it is unable to understand how Mogo arrived at the figure they are seeking to be paid.
Further, the court stated that it found 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%, exclusive of additional charges, is nothing short of exploitative,” the court ruled.
However, the court acknowledged that Aziz remains indebted to the Mogo, and therefore the Mogo cannot be denied recovery altogether.
The court has ordered the respondent to pay the remaining loan as per the agreement, noting that he had already paid Mogo Ksh 299,367, 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 interest 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.
