 to fuel its used car loan business in Kenya, where demand){kind=link}
HAKKI AFRICA, the Japanese used car loan firm has raised ¥100 million ($680,000) to fuel its used car loan business in Kenya, where demand is at an all-time high despite its loans being expensive and exploitative.
The unsecured and unguaranteed credit line from ¥100 million ($680,000) from Shoko Chukin Bank will provide working capital to boost the supply of loans in Kenya, where HAKKI Africa has positioned itself as an alternative for drivers unable to access traditional bank credit despite cries of exploitation from borrowers.
Financing Kenya’s Taxi Economy
Founded in 2019, HAKKI Africa’s stated mission is to “increase the number of people who increase possibilities.” The firm focuses on drivers who struggle to provide financial documents or down payments typically required by lenders. By offering loans for second hand car purchases, the company argues it supports vehicle ownership, income stability, and upward mobility for gig workers.
Since entering Kenya, HAKKI Africa says it has disbursed loans to over 2,000 drivers, relying on a proprietary algorithm to assess risk. The system factors in multivariate data such as mileage, driving history, and repayment patterns, automating credit scoring in markets where credit information is limited or unreliable. The company claims this model reduces risk exposure while broadening access for underserved borrowers.
Expansion Plans
With fresh capital from Shoko Chukin Bank, HAKKI Africa plans to strengthen its customer support operations, recruit new staff, and upgrade loan management systems. It also aims to forge deeper partnerships with local financial institutions, a move that could allow it to scale lending faster and tap into broader segments of the Kenyan mobility market.
The company is not limiting its ambitions to Kenya. Beginning in 2025, HAKKI Africa intends to replicate its lending model in South Africa and India, markets with large populations of ride hailing drivers and similar challenges around credit access.
Growing Demand, Growing Concerns
Kenya’s appetite for car loans remains strong, fuelled by the growth of digital taxi platforms, the resilience of the informal transport sector, and the rising cost of vehicle ownership. Yet consumer advocates and industry analysts warn that products in the space often carry high interest rates, hidden fees, and repossession risks.
For drivers, especially those working for platforms such as Uber, Bolt, and Little, access to a vehicle can mean steady income, but loan repayment schedules can quickly become unsustainable if earnings fall short. Critics argue that this dynamic has left some drivers trapped in cycles of debt, unable to keep pace with repayments while still bearing fuel, maintenance, and platform commission costs.
A Crowded and Competitive Space
HAKKI Africa is operating in a competitive field. Local microfinance firms such as Platinum Credit, Ngao Credit, Premier Credit and Mogo, an exploitative international car financier and banks such as Stanbic, NCBA and Co operative Bank offer auto loans to salaried workers and SMEs. Global ride hailing platforms have also partnered with several financial service providers to offer vehicle financing programs for their driver partners. Bolt, for instance, has previously faced scrutiny in Kenya over alleged preferential treatment for drivers using vehicles financed through its partners.
For HAKKI Africa, the differentiator would have been its pricing model but it has unfortunately copied Mogo and issued loans in USD putting pressure on borrowers and leading to mass repossessions. A new microfinance bill, in draft stages, aims to address this issues to balance financial inclusion with borrower protection.
Looking Ahead
If successful, the latest capital infusion could allow HAKKI Africa to grow its loan book significantly in Kenya, where car ownership is a gateway to both employment and mobility. But as the company accelerates, so too will debates over fair pricing, borrower protection, and the broader impact of high cost vehicle financing on drivers already squeezed by rising expenses.