Kenya: Safaricom starts Sh20 a day loan for buying smartphones
July 26th 2020
Safaricom will Tuesday kick off the sale of smartphones on credit to its subscribers who will make daily payments of as little as Sh20 a day for up to a year as the firm seeks to ramp up data revenues.
The telco is partnering with Google to offer one million affordable smartphones.
Safaricom is aiming to rev up its data business to offset sluggish growth in mobile calls, where it has seen a small revenue growth due to saturation, forcing the firm to turn to M-Pesa and internet to power future growth.
“Cost of devices should no longer be an impediment. We are launching an innovative device financing plan dubbed dubbed Lipa Mdogo Mdogo that will give customers still using feature phones an opportunity to own a 4G- enabled device by paying only Sh20 a day,” said Safaricom chief executive Peter Ndegwa said in opinion published in the Business Daily.
The offer will be available for all phones and the daily repayments will increase if subscribers go for high value smartphones as Safaricom seeks to eventually convert about 4 million 2G and 3G-enabled phones to 4G.
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