M-KOPA Kenya, the Kenyan arm of pay-as-you-go fintech M-KOPA Holdings, has surpassed $1.6 billion (KES 207 billion) in credit extended to customers, cementing its role as a major player in Kenya’s consumer credit market. The milestone was announced alongside the release of the company’s first Kenya-focused impact report, which highlights its evolution from a rural solar provider to one of the country’s largest lenders to low-income households.
From Solar to Smartphones
Founded to deliver affordable solar systems to off-grid communities, M-KOPA has grown into a financial services powerhouse. Over the past 15 years, the company has served 4.8 million customers, many of whom had never accessed formal banking services.
Smartphones have become M-KOPA’s flagship product, driving much of this growth. According to the report:
- 4.5 million Kenyans have acquired a handset through M-KOPA since 2010.
- 2.1 million customers bought or owned a smartphone for the first time via the platform.
Martin Kingori, M-KOPA Kenya General Manager, stated:
Kenya has always been the beating heart of M-KOPA’s progress journey. What matters most is the lived progress of everyday earners—nine out of ten report an improved quality of life, and more than half are now earning more.
Financial Inclusion and Digital Services
The report underscores M-KOPA’s role in expanding financial access:
- 37% of customers accessed their first formal loan through M-KOPA.
- 68% received their first health insurance cover via its ‘More than a Phone’ platform, which bundles cash loans, insurance, and other essential digital services.
Economic Impact
M-KOPA’s footprint extends beyond consumer credit:
- Paid KES 3.79 billion ($29.2 million) in taxes in 2024, ranking among Kenya’s largest private-sector taxpayers.
- Spent KES 20.3 billion ($156.5 million) on procurement last year, supporting local suppliers.
- Operates Africa’s largest phone assembly line in Nairobi, producing two million devices to date and training technicians in electronics assembly and quality control.
The company employs 1,320 people directly and works with 14,000 sales agents, many of whom are young Kenyans earning their first steady income.
Addressing Consumer Credit Concerns
Kenya’s consumer credit market has faced criticism over aggressive debt collection and over-indebtedness. M-KOPA says its model prioritizes customer protection:
- No hidden fees or penalties for late payments.
- Customers who fall behind are prevented from accumulating extra debt.
- Device-locking feature—controversial but designed to avoid spiraling balances—allows users to return devices and reclaim deposits.
Betting on Electric Mobility
M-KOPA is also expanding into electric vehicles (EVs). The company has financed over 5,000 electric motorbikes for riders in Nairobi using its pay-as-you-go model, making EV ownership accessible to informal workers.
Brian Njao, General Manager for Mobility, commented:
Reaching 5,000 electric motorbikes demonstrates how M-KOPA’s financing model works across asset classes.
Since 2010, M-KOPA’s initiatives have cut 2.03 million tonnes of CO₂ equivalent, driven by solar adoption, smartphone refurbishment, and EV financing.
