NAIROBI, Kenya- Kenya’s mobile phone landscape is set for a major shake-up as asset-financing powerhouse M-Kopa ramps up local smartphone production.
The company aims to produce 10 million smartphones annually within the next three years, a goal that could significantly impact a market currently dominated by imports.
The move aligns with the soaring demand for pay-as-you-go models, an affordable solution for low-income earners eager to access smartphones and digital services without upfront costs.
The pay-as-you-go, or “Lipa pole pole,” model has seen rapid adoption across Kenya, enabling everyday consumers to access high-tech devices and electronic equipment through manageable installments.
Originally entering Kenya in 2012 with affordable solar lighting systems, M-Kopa has since expanded its product range to include smartphones, digital loans, and even electric motorcycles.
Since its first locally produced smartphone hit the market last year, M-Kopa’s Nairobi-based assembly plant has maintained a monthly output of about 100,000 devices, bringing its annual production capacity to roughly 1.2 million.
M-Kopa General Manager Martin Kingori announced that the plant has already produced over 1.5 million smartphones, with a target of reaching 10 million by 2027.
This production capacity positions M-Kopa as a significant competitor to East Africa Device Assembly Kenya Limited (EADAK), launched last year by President William Ruto with a similar annual production target of 1.2 million units.
M-Kopa’s local assembly plant has not only boosted smartphone production but also created 325 jobs, particularly benefiting young, first-time job seekers.
The company plans to increase this workforce to 500 by next year. Additionally, it operates through a network of more than 14,000 paid sales agents, with plans to grow this number to 20,000 by 2025.
This extensive reach is helping drive smartphone adoption across the country, advancing Kenya’s digital connectivity goals.
Since 2020, M-Kopa has sold over 3.3 million smartphones under its flexible payment model, making significant strides toward bridging the digital divide.
The company’s financing extends beyond smartphones, supporting over 1,500 electric motorcycles and reducing carbon emissions in Kenya’s bustling transport sector.
Overall, M-Kopa has extended up to about Sh193.3 billion in credit across its markets, with Kenya as its largest beneficiary.
Beyond smartphones, M-Kopa’s economic contributions underscore its role as a driver of financial inclusion and growth in Kenya.
As one of the country’s large taxpayers, M-Kopa has contributed over Sh17.2 billion in taxes, including VAT, corporate tax, and PAYE, helping fund essential government services and infrastructure.
According to Kingori, M-Kopa is “a purpose-driven company” that envisions not only connecting people digitally but also making financial services accessible to all.
With its expanding reach and commitment to affordable digital solutions, M-Kopa is paving the way for financial empowerment and long-term economic growth in Kenya and beyond.
