Gadget customer Odhiambo Ochieng’ with Trucom dealership representative Hellen Okiri at a Mogo-financed gadget point of sale. Mogo has ventured into smartphone financing to expand access to quality devices across Kenya./HANDOUT
Asset financing firm Mogo has entered the smartphone financing market in Kenya in a push to expand access to quality mobile devices and support the country’s growing digital economy.
The company announced on November 4 that it will now allow customers to acquire smartphones and pay for them in small daily instalments spread across a period of up to 12 months. The model is designed to ease the financial burden of buying devices upfront, which has long been a barrier for millions of Kenyans.
Mogo, which describes itself as East Africa’s leading asset financier, has already financed more than 45,000 devices from Transsion brands, including Tecno, Infinix and Itel.
According to the company, smartphones have become essential for education, business and financial services. Fred Muoka, Mogo Kenya’s Head of Sales for device financing, said the new product will help more Kenyans access the digital tools they need.
“Through device financing, Mogo is enabling access to education, entrepreneurship and financial inclusion. A reliable smartphone is now essential to participate in today’s digital economy,” he said.
He added that the process is designed to be fast and simple. “The entire process, from device selection to approval, takes less than 30 minutes, making it one of the fastest financing options available. Customers then download the Mogo app that ensures responsible repayment,” he said.
To qualify for financing, customers choose a device from participating shops and provide a national ID and six-month M-Pesa statement for verification. Once approved, the buyer pays a deposit of between 23 and 35 per cent. The remaining balance is split into manageable daily repayments for up to a year.
Smartphone uptake in Kenya continues to grow. Recent data from the Communications Authority shows the country now has more than 42 million smartphone users. The number has risen steadily as more people transition from basic phones to internet-enabled devices.
But affordability remains a challenge. A 2024 GSMA study on smartphone adoption in Kenya found that more than half of mobile users cite high device costs as the main barrier to accessing the internet. Rising global smartphone prices have worsened this problem, pushing many households to rely on financing plans.
Market assessments show that the average cost of a smartphone in Kenya has nearly tripled since 2019. As a result, “lipa mdogo mdogo” arrangements have become critical for consumers.
The Central Bank’s 2024 Financial Access Survey reported that accounts linked to such financing options grew from about 580,000 in 2021 to more than 1.7 million in 2024.
Mogo said its entry into the market responds directly to this demand while supporting national digital inclusion efforts. The company applies responsible lending rules, including a minimum borrower age of 21 and limits on multiple overlapping loans within its platform.
“When customers experience unforeseen challenges, MOGO offers options to restructure instalments so that they can keep their device and maintain a manageable repayment plan,” Muoka added.
