Watu, a Pan-African asset finance provider, has reached an impressive milestone in Kenya’s mobile device market. Through its subsidiary, Watu Simu, the company has financed the purchase of over one million mobile devices, making a significant impact on digital access for customers across Kenya. In collaboration with manufacturers like Samsung Mobile, Watu Simu provided its millionth device financing in October, just 23 months after entering the mobile device financing market.
Kevin Michuki, Head of Growth at Watu Simu, highlighted the milestone as a sign of increasing demand for flexible financing solutions, like the “Buy Now, Pay Later” model, which is helping bridge the digital divide in Kenya and Tanzania. “At Watu Simu, we are celebrating this millionth customer milestone as it confirms the growing demand for sustainable financing models in the race to bridge the digital divide,” Michuki said.
With smartphone prices often ranging between Ksh 45,000 and Ksh 80,000, Watu Simu’s financing options make high-quality devices accessible to customers who rely on them for work and economic activities. Data from Watu Simu indicates that over 70% of their financed devices are used in digital economic sectors, including ride-hailing, online delivery, and marketplaces, where smartphones are essential for efficient operations.
Beyond Kenya and Tanzania, Watu has now financed over 1.5 million mobile devices across sub-Saharan Africa, making it the region’s fastest-growing smartphone financier. By empowering individuals with accessible technology, Watu is helping to drive digital transformation and economic inclusion, especially in areas with limited financing options.
The increasing adoption of smartphones in Kenya aligns with broader trends. According to a recent GSMA report, the Kenyan digital economy is projected to contribute KSH 662 billion to the nation’s GDP by 2028. The report, titled Driving Digital Transformation of the Economy in Kenya, suggests that policies promoting digitalization in sectors like agriculture, manufacturing, and transport will add nearly 300,000 new jobs and raise tax revenues by KSH 150 billion.
These developments reflect broader trends within Kenya’s telecommunications sector. The latest data from the Communications Authority of Kenya (CA) shows significant growth in mobile connectivity. As of June 2024, mobile penetration reached 128.3%, with 66.1 million mobile devices connected to networks. Notably, the adoption of smartphones grew, reaching 35.2 million active devices compared to the previous year, while feature phone use declined.
The CA Fourth Quarter Sector Statistics Report also noted that smartphone penetration increased to 68.3% in Kenya. This growth reflects a shift in consumer preference, as more people seek advanced devices to support digital activities. The availability of smartphone financing options, such as those offered by Watu Simu, plays a pivotal role in accelerating this trend, allowing people to access tools critical for economic productivity and connecting with broader opportunities.
Watu’s role in facilitating smartphone access positions the company as a major player in Africa’s digital finance landscape. With their milestone of one million devices in Kenya, Watu Simu continues to empower individuals, promote economic growth, and enhance digital inclusion across the continent. As Kenya’s digital economy expands, partnerships like these will be essential in ensuring that all citizens have access to the tools they need to thrive.
