Table of Contents
M-KOPA Kenya, the local branch of the innovative pay-as-you-go enterprise M-KOPA Holdings, has surpassed a remarkable milestone by extending over $1.6 billion (KES 207 billion) in credit to customers within East Africa’s largest economy. This achievement highlights the company’s deep integration into Kenya’s consumer lending landscape.
Earlier this week, M-KOPA unveiled its inaugural impact report centered on Kenya, chronicling its evolution from a rural solar system provider to one of the nation’s leading financiers for low-income households. The firm revealed to Nairobi-based journalists that it has supported 4.8 million customers over the past 15 years, many of whom had never previously accessed formal credit facilities.
Smartphone Financing Drives Growth
A significant portion of M-KOPA’s expansion is attributed to its smartphone offerings, now the company’s primary product. The report indicates that since 2010, 4.5 million Kenyans have purchased mobile phones through M-KOPA, with 2.1 million acquiring their first-ever handset via this platform.
“Kenya remains the core of M-KOPA’s journey,” stated Martin Kingori, General Manager of M-KOPA Kenya. “The true measure of our success lies in the tangible improvements in everyday lives-90% of our customers report enhanced living standards, and over half have increased their earnings.”
Moreover, 37% of M-KOPA’s clientele accessed their initial formal loan through the company, while 68% obtained their first health insurance coverage via the “More than a Phone” initiative, which integrates loans, insurance, and essential digital services into one accessible package.
Strengthening Kenya’s Economic Fabric
M-KOPA’s growth is mirrored in its substantial contributions to Kenya’s formal economy. In 2024 alone, the company paid KES 3.79 billion ($29.2 million) in taxes, ranking it among the top private-sector taxpayers nationally. Additionally, its procurement expenditure of KES 20.3 billion ($156.5 million) last year bolstered a wide network of local suppliers.
The Nairobi-based phone assembly plant, touted as Africa’s largest, has manufactured two million devices to date. This facility also serves as a training hub for technicians specializing in electronics assembly and quality assurance-skills that align with the government’s agenda to promote domestic manufacturing capabilities.
Currently, M-KOPA employs 1,320 staff members directly and collaborates with 14,000 sales agents countrywide, many of whom are young Kenyans earning their first consistent income.
Addressing Consumer Credit Challenges
Despite the rapid growth of Kenya’s consumer credit sector, concerns have emerged regarding aggressive debt collection and the risk of overburdening low-income borrowers. M-KOPA maintains that its business model prioritizes customer protection.
The company’s approach eliminates hidden charges and late payment penalties, and it halts further debt accumulation for customers who fall behind on repayments, thereby mitigating the risk of excessive indebtedness.
One controversial aspect remains the device-locking mechanism, which disables phones or motorbikes when payments are overdue. M-KOPA defends this feature as a necessary safeguard against escalating debt cycles. Customers retain the option to return devices and receive refunds on their deposits, ensuring flexibility and fairness.
Expanding into Electric Mobility
M-KOPA has also ventured into the electric vehicle (EV) sector, financing over 5,000 electric motorbikes for Nairobi’s riders through the same pay-as-you-go framework. This model opens access to EVs for informal workers who typically lack financing options for such assets.
“Achieving 5,000 financed electric motorbikes showcases the versatility of M-KOPA’s financing across different asset categories,” explained Brian Njao, General Manager of M-KOPA Mobility.
Since 2010, these initiatives have contributed to a reduction of 2.03 million tonnes of CO₂ equivalent emissions, initially driven by solar energy products and now furthered by smartphone refurbishment and electric vehicle investments.
