BUSINESS

Watu Simu Marks Sale of One Million Devices in Style

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Boda Boda riders review operating features on a smartphone. (Photo: Courtesy)
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Pan African asset finance solutions provider Watu Simu has reached a milestone by selling more than one million mobile devices in Kenya. Through its Watu Simu subsidiary and in partnership with device manufacturers such as Samsung Mobile, the firm achieved the feat by financing purchase of smartphone devices for its millionth customer at the end of October.

Watu Simu Head of Growth, Mr Kevin Michuki, said the firm had successfully retained its millionth customer just 23 months after entering the mobile devices asset finance market. Mr Michuki said the firm is actively working to bridge the digital divide in Kenya and Tanzania by financing the acquisition of quality smartphone devices. With average smartphone device costing between Ksh45,000 and Ksh 80,000, Watu Simu solutions are coming in handy for discerning customers seeking to acquire quality devices.

“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,” Mr Michuki explained. “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.”

Beyond Kenya and Tanzania, Watu Credit now has more than 1.5 million mobile device customers. Significantly powered by smartphone use, a recent report by the GSMA confirms that Kenya’s digital economy will contribute Ksh662 billion to GDP by 2028. The report, Driving Digital Transformation of the Economy in Kenya, projects that this growth, driven by strategic policy reforms, will accelerate digitalisation in critical sectors such as agriculture, manufacturing, transport, and trade. The report also forecasts the creation of 300,000 new jobs and increased tax revenues by KSH 150 billion.

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According to a Communications Authority of Kenya Report, the country’s telecommunications subsector experienced significant growth during the 2023/24 Financial Year, attributed to the expansion of telecom infrastructure and increased adoption of smartphone services.

The latest CA Fourth Quarter Sector Statistics Report for the Financial Year 2023/2024 (1st April-30th June 2024) indicates that at the end of the referenced period, the total number of mobile phone devices connected to mobile networks was 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 Fourth Quarter Sector Statistics Report notes that feature phones acquisition dropped from 31,211,780 to 30,871,316 devices, while smartphone acquisition grew from 34,140,290 to 35,214,539 devices within the period under review.

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Written by
BT Reporter -

editor [at] businesstoday.co.ke

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