NAIROBI, Kenya, July 20 – As smartphone adoption deepens throughout Kenya and Sub-Saharan Africa, Watu Simu — a subsidiary of asset financing agency Watu — is betting huge on increasing entry to inexpensive smartphones by versatile, pay-as-you-go financing.
Speaking to Capital Business, Kevin Michuki, Head of Growth at Watu Simu Kenya, displays on the corporate’s journey, buyer influence, and the way latest legislative reforms are shaping the digital lending panorama.
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Please introduce your self.
I’m Kevin Michuki, and I function the Head of Growth at Watu Simu right here in Kenya.
How many smartphones has Watu financed up to now, and what are your projections?
Watu is celebrating its tenth anniversary this yr. In simply over three years since we entered the smartphone area, we’ve financed greater than three million gadgets throughout our eight markets. It’s a strong milestone — but we’re solely scratching the floor. With smartphone penetration simply over 70%, there’s nonetheless important room for development. In Kenya alone, we’re operational in all 47 counties, and we see continued enlargement throughout East Africa and our newer African markets.
Who makes up your buyer base — rural or city communities?
Our clients are primarily in underserved areas, typically people with out entry to conventional credit score. Our purchase now, pay later mannequin permits them to make a small down cost after which repay in each day or weekly instalments. We’ve made it extra versatile by a pay-as-you-go platform, which adjusts to clients’ earnings patterns and preferences.
There are claims that BNPL will increase the price of possession. What’s your view?
At Watu, we promote aspirational purchases — giving folks entry to expertise they in any other case wouldn’t afford upfront. Customers are properly knowledgeable about mortgage phrases from the beginning. For many, the choice to pay over time is an enabler, not a burden. It brings the newest expertise inside attain in a manageable and clear approach.
How do smartphones influence low-income communities?
Our inner information reveals that 80% of our clients use their smartphones for income-generating actions. These aren’t simply gadgets for communication — they’re instruments for enterprise. Whether it’s on-line retail, supply companies, digital funds, or content material creation, smartphones are serving to folks unlock financial alternatives.
How do you steadiness affordability with default danger?
The purchase now, pay later mannequin is designed round our clients’ earnings cycles, which enormously reduces the danger of default. Most of our purchasers view smartphones as a necessity, not a luxurious. It’s how they earn a dwelling, run their enterprise, and entry important companies. That intrinsic worth encourages compensation.
What is Watu’s stance on the brand new Business Laws Amendment Act?
The Business Laws Amendment Act of 2024 is a welcome improvement. It strengthens shopper safety, promotes contract readability, and offers a stronger framework for accountable lending — rules we already adhere to. It’s additionally fostered a extra secure setting for partnerships to thrive. We’re proud to work with Samsung, as an illustration, to ship inexpensive gadgets, and we proceed to help our huge seller and agent community, which includes hundreds of people incomes a livelihood by Watu.
