Safaricom in partnership with Google plans to launch a device financing program that allows low-income earners in Kenya to get 4G smartphones for just 20 Kenyan Shillings (N74) per day.
According to the company, the package is aimed at empowering customers currently on 2G devices to upgrade and enjoy high-speed internet connectivity with 4G smartphones. Themed Lipa Mdogo Mdogo, the program is based on insights and learnings from Safaricom’s Maisha Ni Digital campaign launched in April 2019 which saw over 1 million customers acquire 4G enabled devices. The new campaign is currently in a pilot phase and is expected to be launched by the end of June. Smartphone penetration
Although Kenya has a high rate of mobile phone penetration, a large percentage are using features or 2G phones. Google estimates that about 60% of mobile phone users in the country use 2G phones. Peter Ndegwa, CEO of Safaricom According to Safaricom CEO, Peter Ndegwa, the tough economic environment is the main reason people cannot afford smartphones. “Despite the high percentage in mobile telephone penetration in Kenya, there remains a large population in this country that still uses 2G phones; tough economic environment being the main reason they cannot afford smartphones. We intend to bridge the gap for these consumers by offering device financing programme,” He added that the company intends to bridge the gap by providing affordable payment plans which low-income earners can take advantage of to own their own 4g smartphones.
With the new campaign, Safaricom seeks to empower one million customers with 4G smartphones by offering them the opportunity to pay just KES 20 per day. Safaricom Device Financing Offering
Although the company didn’t reveal the make and specs of the 4G smartphones they intend to offer, if it is the same as the ones offered during its 2019 campaign, customers will get the Neon Ray (4G) priced at about N15,000 (KES 3,9990) or the Neon Nova (4G) N22,000 (KES 5,999).
This means that at if a customer collects he will pay back the cost price in about 200 days or 300 days if he opts for the Neon Nova.
However, looking at the recent device financial offering where the company partnered with Samsung and M-Kopa to offer customers smartphones for 60 Kenyan Shillings per day, the device offering wouldn’t be without profit.
The Safaricom and Samsung partnership offered customers the Samsung Galaxy A10s. However, a one time deposit of KES 3,499 […]