Asset-financing company M-Kopa now plans to locally produce at least 10 million smartphones annually in the next three years, in what could shake up the country’s mobile phone market dominated by imports.
This is on the back of increasing demand for pay-as-you-go service model in Kenya mainly being embraced by low-income earners who cannot afford one-off payments for gadgets.
The model has gained traction across the country with consumers accessing mobile phones, a wide range of electronic equipment, and other products from different companies which allow “every day earners” own these products through partial payments.
M-Kopa made an entry into Kenya with home solar lighting equipment in 2012, before venturing into smartphones, digital loans and now electric motorcycles.
The firm which also has operations in Nigeria, Ghana, South Africa and Uganda, produced its first local smartphone in Kenya last year, with the current total output above one million.
According to management its industrial Area-based assembly plant is churning at least 100,000 mobile phones per month, putting the current annual production capacity at about 1.2 million.
“Over 1.5 million smartphones have so far been produced through the local assembly factory with a target of 10 million locally produced and sold affordable smartphones by 2027,” M-Kopa general manager Martin Kingori said.
Its capacity and expansion plans in local production of smartphones will place it way above East Africa Device Assembly Kenya Limited(EADAK).
Launched by President William Ruto in November last year, EADAK which is located in Athi River, Machakos County, has an average annual production capacity of 1.2 million pieces.
M-Kopa has so sold more than 3.3 million smartphones in Kenya since 2020 under the pay-as-you-go model, commonly known as “Lipa pole pole”, playing a major role in increasing connectivity and access to smart devices, boosting digital access in Kenya.
It has so far created 325 jobs since at its smartphone assembly factory, primarily for youth and first-time job seekers, which is expected to increase to 500 by next year.
It has more than 14,000 paid sales agents, with a target of growing that number to 20,000 by the end of 2025.
M-Kopa has contributed over Sh17.2 billion as a large taxpayer in direct and indirect taxes to the Kenya Revenue Authority since inception (inclusive of Corporate tax, Withholding tax, VAT, reverse VAT, Import taxes and PAYE as at end September 2024 ), its books show.
The company has financed over 1,500 e-motorbikes on Kenya’s roads, increasing income for drivers and positively contributing to reducing carbon emissions.
It has also extended up to $1.5 billion (Sh193.3 billion) in credit to more than five million customers across its markets, with Kenya being the biggest market.
“We are a purpose-driven company
whose mission is not only to connect
people digitally but to ensure that
financial services are accessible and affordable, paving the way for financial empowerment and long-term
economic growth,” Kingori said.
