Pan African asset finance solutions provider Watu has achieved a significant milestone by selling over one million mobile devices in the Kenyan market.
Through its subsidiary, Watu Simu, and in collaboration with device manufacturers such as Samsung Mobile, the company accomplished this remarkable feat by financing the purchase of smartphone devices for its millionth customer at the end of October.
In a statement confirming this achievement, Kevin Michuki, Head of Growth at Watu Simu, noted that the company successfully retained its millionth customer just 23 months after entering the mobile devices asset finance sector.
He emphasized that the firm is actively engaged in bridging the digital divide in Kenya and Tanzania by facilitating the acquisition of high-quality smartphone devices for a diverse clientele.
With the average cost of smartphone devices ranging from Ksh 45,000 to Ksh 80,000, Watu Simu’s solutions are proving invaluable for discerning customers looking to obtain quality devices that enhance their economic productivity.
“At Watu Simu, we are celebrating this millionth customer milestone as it confirms the growing demand for sustainable financing models such as Buy Now, Pay Later products in the race to bridge the digital divide.
“Our customer base data confirms that most devices acquired have been deployed in active economic production sectors. More than 70% of our clients are involved in digital enterprises, including ride-hailing, online delivery and marketplaces, among other gigs that require smartphones for efficient operations,” Michuki explained.
Watu Credit has expanded its reach beyond Kenya and Tanzania, now serving over 1.5 million customers through mobile devices, establishing itself as the fastest-growing smartphone financier in sub-Saharan Africa.
A recent GSMA report highlights that Kenya’s digital economy is projected to contribute KSH 662 billion to the GDP by 2028, significantly fueled by the increasing use of smartphones.
The report, titled Driving Digital Transformation of the Economy in Kenya, anticipates that this growth, spurred by strategic policy reforms, will enhance digitalization across vital sectors such as agriculture, manufacturing, transport, and trade.
Additionally, it predicts the creation of 300,000 new jobs and an increase in tax revenues amounting to KSH 150 billion.
According to the Communications Authority of Kenya, the telecommunications sector in the country witnessed substantial growth during the 2023/24 Financial Year, driven by the expansion of telecom infrastructure and a rise in smartphone service adoption.
The latest CA Fourth Quarter Sector Statistics Report for the Financial Year 2023/2024 (covering the period from April 1 to June 30, 2024) reveals that by the end of this period, the total number of mobile devices connected to mobile networks reached 66.1 million, resulting in a penetration rate of 128.3 percent.
The penetration rates for smartphones and feature phones were recorded at 68.3 percent and 59.9 percent, respectively.
Furthermore, the report indicates a decline in feature phone acquisitions from 31,211,780 to 30,871,316 devices, while smartphone acquisitions increased from 34,140,290 to 35,214,539 devices during the reviewed period.
