You are comparing the function object c.lower
with a character constant: you need to invoke the function, instead:
def scrambler(string):
sen = ''
for c in string:
if c.lower() == 'k':
sen += 'm'
elif c.lower() == 'o':
sen += 'q'
elif c.lower() == 'e':
sen += 'g'
else:
sen += c
return sen
print scrambler('koe')