Asset financing firm M-Kopa sold over 1 million branded smartphones on hire-purchase in Kenya last year. This represents 20.9% of the total 4.8 million smartphones sold in the country, according to data from the Communications Authority of Kenya (CA) for the 12 months ending September 2023.
The company’s production capacity is 5,000 devices per day, so annual sales represented 69.4% of their total output. The growing demand for M-Kopa’s smartphones shows the increasing adoption of credit-based smartphone purchases in Kenya.
Local Assembly and Import Duties
M-Kopa began assembling smartphones locally in January 2023 after the government introduced a 10% excise duty on imported phones. This was in addition to the existing 25% import duty which made imported devices very expensive. By assembling locally, M-Kopa is able to offer competitively priced smartphones under its pay-as-you-go model.
The company is one of only two firms assembling smartphones in Kenya. The other is East Africa Device Assembly Kenya, a consortium led by Safaricom in partnership with Chinese phone manufacturer Telel, Jamii Telecom and the Industrial Technology Training Company Limited.
Free Health Insurance Coverage
Alongside the sales milestone, M-Kopa announced it has now covered over 1 million Kenyans with free health insurance through its partnership with Turaco Insurance. Launched in January 2023, the program offers customers who buy an M-Kopa smartphone free inpatient health insurance. The cover pays out Ksh1,000 per night spent in a registered public or private hospital.
M-Kopa Kenya General Manager Martin Kingori said the company is committed to expanding financial and health inclusion. “What started five years ago as health insurance coverage for our sales agents has grown to cover over 1 million Kenyans,” he said.
Growing Demand for Credit-Based Smartphone Purchases
M-Kopa’s financing model has worked well in a market where affordability is a big concern. By allowing customers to pay for smartphones in installments, the company has opened up mobile technology to more Kenyans.
With a strong presence in the local smartphone market and a growing portfolio of value added services, M-Kopa is poised to expand further in Kenya and beyond.