(Nairobi) – M-Kopa, an asset financing company based in Kenya, is on track to produce at least 10 million smartphones annually by 2027, which could significantly change the landscape of the country’s mobile phone market, traditionally dominated by imports. The company’s move is driven by the increasing demand for its pay-as-you-go service model, which offers affordable smartphones to low-income earners who cannot afford to pay the full price upfront.
Since its inception in 2012, M-Kopa has expanded its services from home solar lighting to smartphones, digital loans, and even electric motorcycles. The company now operates in several African countries, including Kenya, Nigeria, Ghana, South Africa, and Uganda. In 2023, M-Kopa produced its first locally assembled smartphone in Kenya, and the company has already surpassed the one-million mark in total smartphone production.
Currently, M-Kopa’s assembly plant, located in Nairobi’s Industrial Area, produces around 100,000 smartphones each month, resulting in an annual production capacity of about 1.2 million units. To date, the company has assembled more than 1.5 million smartphones at this facility, with plans to increase its output significantly over the next few years.
M-Kopa’s ambitious target of 10 million smartphones by 2027 will put it ahead of competitors in the region, including East Africa Device Assembly Kenya Limited (EADAK), which has an annual capacity of 1.2 million units. Launched by President William Ruto in 2023, EADAK’s production facility in Machakos County aims to increase local manufacturing but currently lags behind M-Kopa in output.
Since the introduction of its pay-as-you-go model in 2020, M-Kopa has sold over 3.3 million smartphones in Kenya alone, helping to increase digital access and connectivity in the country. The company’s “Lipa pole pole” model, which allows consumers to pay for their phones in installments, has been especially popular among everyday earners who may not have the means for full payments upfront.
M-Kopa’s local production plans also include job creation. The company has created 325 jobs at its assembly plant, mostly for youth and first-time job seekers, and expects this number to grow to 500 by next year. Additionally, M-Kopa employs over 14,000 sales agents, with plans to increase this number to 20,000 by the end of 2025.
The company has been a significant contributor to Kenya’s economy, having paid over Sh17.2 billion ($120 million) in taxes since its founding, which includes corporate tax, VAT, and other contributions. M-Kopa has also financed over 1,500 electric motorcycles in Kenya, contributing to reducing carbon emissions and providing income opportunities for drivers.
With over $1.5 billion in credit extended to more than five million customers across its markets, M-Kopa’s reach continues to grow, making Kenya its largest market. M-Kopa’s General Manager, Martin Kingori, emphasized that the company is committed to not only improving digital connectivity but also ensuring financial services are accessible and affordable to empower consumers and promote long term economic growth.