Craft Silicon Founder Kamal Budhabhatti and Little Chief Operating Officer Niladri Roy/ HANDOUT
Kenya’s buy now pay later market is in transition as industry players record a mixed bag of fortunes, exposing the volatile nature of Africa’s emerging tech sector.
Just months ago, Lipa Later, a Kenyan BNPL fintech, was celebrating a significant $10 million (Sh5.69 billion) debt and equity injection, aimed at supporting its ambitious expansion plans across Africa; it's under administration.
Craft Silicon’s Spotit, on the other hand, has hit over Sh200 million in transactions across multiple merchant partners, a year after launch, signifying consumers’ appetite for fintech solutions that offer flexible repayment opportunities on products and services.
According to the 2024 FinAccess Survey, the proportion of Kenyans utilizing BNPL services surged from 2.1 per cent in 2021 to 6.2 per cent in 2024, equating to approximately 1.75 million users.
Craft Silicon Group CEO Kamal Budhabatti attributes the sudden growth in performance of Spotit to its linkage with already existing bank customers, with the company eyeing Sh3.8 billion in transactions by the end of 2025.
“The response has been phenomenal, and we are excited about the future. Our approach, where customers are pre-approved by their banks, ensures a frictionless shopping experience. Consumers can walk into any approved store knowing they have an available spending limit from their bank,” Budhabatti said.
He said the firm’s market impact began in mid-, when it officially launched, coinciding with the growing demand for BNPL solutions in Kenya, proving that the market is ripe for transformation.
The Buy Now, Pay Later (BNPL) market in Kenya has experienced significant growth, with projections estimating a 13.6 per cent annual increase, reaching a market value of $1.18 billion (Sh152.5 billion) in 2025.
This expansion is driven by consumers' growing demand for flexible payment options and the rise of digital financial services.
Other providers operating in Kenya include Aspira, Loop, Safaricom, M-KOPA, and MasterCard.
Some players in Kenya’s buy now pay later market include M-Kopa, Safaricom’s Faraja, Tala, and Branch.
Safaricom’s Faraja, which was launched recently, offers interest-free credit to customers, allowing them to make purchases across various merchants, including Naivas outlets, Goodlife pharmacies, and City Walk. Merchants receive full payment upfront, enhancing their cash flow.
M-Kopa initially focused on financing solar energy solutions but has expanded to provide BNPL options for various products, targeting underbanked populations and utilising a pay-as-you-go model.
The Tala and Branch, primarily known for micro-lending, are fintech companies that have ventured into BNPL by offering short-term credit for purchases, leveraging their existing mobile platforms to reach a broad user base.
The rapid growth of BNPL in recent years has drawn scrutiny from regulators and lawmakers alike.
Earlier last year, MPs urged the Central Bank of Kenya (CBK) to propose legislative changes that would grant it control over BNPL firms.
