Safaricom’s smartphone financing plan, Lipa Mdogo Mdogo, has reached 1.2 million sales, reflecting the high demand for internet access among lower-income groups.
This initiative, modelled on a buy-now-pay-later structure, is a collaboration between Safaricom, Meta, Google, and M-Kopa Solar, allowing consumers to purchase smartphones with payments as low as Ksh 20 a day.
Launched in July 2020, the service has helped increase the number of 4G devices connected to Safaricom’s network, reaching new heights by the end of March 2024.
“Our involvement enabled the acquisition of over 1.2 million smart devices through the Lipa Mdogo Mdogo financing partnership with Meta, Google, and M-Kopa Solar,” Safaricom’s 2024 sustainability report states.
In the past year, the service added five new devices and improved its financing system to better serve users and broaden accessibility.
The payment process for Lipa Mdogo Mdogo was automated during the review period, with new devices like the Neon Smarta and Ultra introduced.
As of March 31 last year, the service had reached 900,000 customers and provided loans amounting to approximately Ksh 6.5 billion.
Meta supports the program by offering affordable data packages tailored for customers using financed devices.
Since the launch of Lipa Mdogo Mdogo, Safaricom has rolled out various internet campaigns to complement the financing plan.
The number of smartphones on Safaricom’s network has grown to 22.9 million by the end of March 2024, up from 16.7 million in March 2021.
Among these, 4G-enabled smartphones rose to 17.3 million from 8.5 million during the same period.
Devices in the financing program are priced between Ksh 10,000 and Ksh 27,000, with initial deposits ranging from Ksh 5,000 to Ksh 5,000 and daily installments between Ksh 20 and Ksh 80.
To qualify for the service, customers must be using a 2G or 3G smartphone and must not be listed with credit reference bureaus for unpaid loans.
They also need to have been a Safaricom customer for at least one year.
