New financing model takes on Kenya's smartphone affordability crisis
Business
By
David Njaaga
| Sep 16, 2025
Jumia East Africa CEO Vinod Goel (left) and Watu Credit Country Manager Erick Massawe during the launch of their partnership to expand affordable smartphone access in Kenya. [David Njaaga, Standard]
Millions of Kenyans struggling to afford reliable smartphones could soon get a lifeline through a new financing plan aimed at bridging the country’s digital divide.
Despite smartphone penetration in Kenya standing at nearly 80 per cent, millions of users remain locked out of the digital economy by unreliable, entry-level devices that cannot support modern apps and services.
From running small businesses and accessing healthcare to studying online, smartphones have become indispensable tools. Yet for many families and workers, the upfront cost of a quality device is still out of reach.
The gap in access limits opportunities for students, delivery workers, farmers and entrepreneurs who depend on mobile connectivity to earn, learn and thrive in an increasingly digital society. It’s this divide that a new partnership now aims to close.
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E-commerce company Jumia and asset financier Watu Credit on Monday announced a buy-now-pay-later scheme allowing customers to pay for smartphones in daily, weekly or monthly instalments through mobile money.
“Access to affordable smartphones is no longer a luxury but a necessity,” said Erick Massawe, Country Manager at Watu Credit.
“Our financing model allows customers to pay as they go while building a credit history and unlocking opportunities to grow their income and digital skills,” he added.
Jumia, one of Africa’s largest online marketplaces, sells a wide range of products including electronics, fashion and household goods.
Watu Credit is a Kenya-based asset financing company known for using technology to provide loans for motorcycles, smartphones and other assets to low-income earners.
Watu uses internet-enabled locking software to ensure repayment, keeping devices active only when payments are made.
Since 2022, the company has financed nearly two million devices in Kenya.
Vinod Goel, Jumia’s East Africa Regional Chief Executive Officer, observed that smartphones are among the platform’s top-selling products and the partnership would expand access to connected devices.
“Over time, we aim to make the entire process seamless and fully online,” noted Goel.
The rollout comes as Kenya positions itself as a leader in mobile money adoption and digital inclusion, with the partnership framed as a step toward enabling small business owners, students and families to access tools that can boost earnings and connectivity.