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The asset financing company Mogo has stepped into the smartphone financing sector in Kenya as part of its effort to increase access to reliable mobile devices and boost the nation’s expanding digital economy.

The firm revealed on November 4 that it will now let clients purchase mobile phones and settle the cost through small daily payments over a maximum of 12 months. This approach aims to reduce the financial pressure of paying for gadgets all at once, a challenge that has persisted for many Kenyans.

Mogo, which refers to itself as the top asset financier in East Africa, has already provided funding for over 45,000 devices from Transsion’s brands, such as Tecno, Infinix, and Itel.

As per the company, smartphones have grown to be crucial for education, business, and financial services. Fred Muoka, the Head of Sales for device financing at Mogo Kenya, mentioned that the new product will enable more Kenyans to obtain the digital tools they require.

“By offering device financing, Mogo is facilitating access to education, business opportunities, and financial inclusion. A dependable smartphone has become crucial for engaging in today’s digital economy,” he stated.

He mentioned that the procedure is intended to be quick and straightforward. “The whole process, from choosing the device to getting approval, takes under 30 minutes, which makes it among the quickest financing choices. Customers then install the Mogo app that promotes proper repayment,” he stated.

To be eligible for financing, clients select a device from affiliated stores and submit a national ID along with a six-month M-Pesa transaction history for confirmation. After approval, the purchaser pays a down payment ranging from 23 to 35 percent. The remaining amount is divided into convenient daily installments over a period of up to one year.

The usage of smartphones in Kenya is increasing. New figures from the Communications Authority indicate that the nation currently has over 42 million smartphone users. The figure has been consistently rising as more individuals switch from simple phones to internet-capable devices.

However, affordability continues to be an issue. A 2024 GSMA report on smartphone usage in Kenya revealed that over half of mobile users mention expensive devices as the primary obstacle to internet access. Increasing global smartphone prices have made things worse, leading many families to opt for payment plans.

Market analyses indicate that the typical price of a smartphone in Kenya has almost tripled since 2019. Consequently, “lipa mdogo mdogo” agreements have become essential for buyers.

The 2024 Financial Access Survey conducted by the Central Bank indicated that the number of accounts associated with these funding methods increased from approximately 580,000 in 2021 to over 1.7 million in 2024.

Mogo stated that its market entry is a direct response to this demand, while also aiding national digital inclusion initiatives. The company enforces responsible lending practices, such as a minimum borrower age of 21 and restrictions on multiple concurrent loans through its platform.

“When clients face unexpected difficulties, MOGO provides solutions to adjust payments, allowing them to retain their device and continue with a feasible repayment schedule,” Muoka mentioned.