Addressing Kenya's smartphone affordability predicament through innovative funding strategies
In a significant move towards digital inclusion, Kenya is set to take a leading role in mobile money adoption with the introduction of a new buy-now-pay-later scheme for smartphones. This initiative aims to address the digital divide in the country by providing reliable smartphones to millions.
The scheme, a collaboration between mobile network operators, fintech firms, and e-commerce company Jumia, allows customers to buy smartphones and pay in daily, weekly, or monthly installments. This innovative financing model is expected to make smartphones more accessible, transforming them from a luxury to a necessity.
Jumia, one of Africa's largest online marketplaces, sells a wide range of products including electronics, fashion, and household goods. Among their top-selling products are smartphones, and the partnership with Watu Credit is expected to expand access to connected devices.
Watu Credit, a Kenya-based asset financing company, is known for using technology to provide loans for motorcycles, smartphones, and other assets to low-income earners. Their internet-enabled locking software ensures repayment, keeping devices active only when payments are made.
For Erick Massawe, Country Manager at Watu Credit, access to affordable smartphones is no longer a luxury but a necessity. He stated that the partnership is a step towards enabling small business owners, students, and families to access tools that can boost earnings and connectivity.
Vinod Goel, Jumia's East Africa Regional Chief Executive Officer, noted that over time, they aim to make the entire process seamless and fully online. This financing model allows customers to pay as they go while building a credit history and unlocking opportunities to grow their income and digital skills.
Despite smartphone penetration in Kenya being nearly 80%, millions of users are locked out of the digital economy due to unreliable, entry-level devices. This new scheme aims to bridge this gap, providing reliable smartphones that can empower students, delivery workers, farmers, and entrepreneurs who depend on mobile connectivity.
Since 2022, Watu Credit has financed nearly two million devices in Kenya. This partnership with Jumia is set to expand this reach, making smartphones more accessible and indispensable tools for running businesses, accessing healthcare, studying online, and earning a living in Kenya.
Read also:
- Show a modicum of decency, truly
- Latest updates for July 31: Introduction of Ather 450S with expanded battery, unveiling of new Tesla dealership, and additional news
- VinFast's debut EV plant in India, Tata Harrier EV distribution starts, next-gen Mahindra Bolero sightings caught on camera
- Tesla-powered residences in Houston create a buyers' frenzy
