Watu, a Pan-African asset finance solutions provider, has reached 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 like Samsung Mobile, the company said it achieved this remarkable feat by financing the purchase of a smartphone device for its millionth customer at the end of October.
Watu Simu’s Head of Growth, Kevin Michuki, confirmed the milestone and highlighted the company’s rapid growth.
He stated that Watu Simu successfully retained its millionth customer just 23 months after entering the mobile device asset finance market.
Mr Michuki emphasized the company’s commitment to bridging the digital divide in Kenya and Tanzania by financing the acquisition of high-quality smartphones for a diverse range of clients.
With average smartphone device costs ranging from Ksh 45,000 to Ksh 80,000, Watu Simu’s solutions are proving to be a valuable option for customers seeking to acquire quality devices to support their economic endeavors.
“At Watu Simu, we are celebrating this millionth customer milestone as it underscores the growing demand for sustainable financing models like Buy Now, Pay Later products in the drive to bridge the digital divide,” explained Michuki.
He added, “Our customer data reveals that most acquired devices have been deployed in active economic sectors. Over 70% of our clients are engaged in digital enterprises, including ride-hailing, online delivery, and marketplaces, among other gigs that rely on smartphones for efficient operations.”
Beyond Kenya and Tanzania, the fintech now boasts a customer base of over 1.5 million mobile device customers, solidifying its position as the fastest-growing smartphone financier in sub-Saharan Africa.
A recent report by the GSMA confirms the significant impact of smartphone use on Kenya’s digital economy.
The report, “Driving Digital Transformation of the Economy in Kenya,” projects that Kenya’s digital economy will contribute KSH 662 billion to GDP by 2028. This growth, driven by strategic policy reforms, is expected to accelerate digitalization in crucial sectors like agriculture, manufacturing, transport, and trade. The report also forecasts the creation of 300,000 new jobs and increased tax revenues by KSH 150 billion.
According to a report by the Communications Authority of Kenya, the country’s telecommunications subsector experienced substantial growth during the 2023/24 Financial Year, attributed to the expansion of telecom infrastructure and increased adoption of smartphone services.
The CA’s Fourth Quarter Sector Statistics Report for the Financial Year 2023/2024 (1st April – 30th June 2024) indicates that at the end of the period, the total number of mobile phone devices connected to mobile networks reached 66.1 million, with a penetration rate of 128.3%.
The penetration rates for smartphones and feature phones were 68.3% and 59.9%, respectively.
The CA’s report further notes that feature phone acquisitions declined from 31,211,780 to 30,871,316 devices, while smartphone acquisitions increased from 34,140,290 to 35,214,539 devices during the period under review.