In much of Sub-Saharan Africa, access to essential tools—solar energy, smartphones, refrigerators, even electric motorcycles—is not just about technology or logistics. It is about affordability. Upfront costs place many of these assets out of reach for the majority of the population. And traditional finance—where it exists—is often risk-averse and inaccessible to low-income consumers.
That is the problem M-KOPA set out to solve.
Founded in 2011, the Kenya-based fintech platform pioneered a pay-as-you-go (PAYG) model that allows customers to purchase essential assets through small, daily digital payments. What began as a solar lighting solution has evolved into a multi-category platform serving over 3 million customers across Kenya, Uganda, Nigeria, and Ghana.
Today, M-KOPA is more than a clean energy story. It is a fintech story, a credit story, and most importantly, a story of ownership.
Name: M-KOPA
Founded: 2011
Headquarters: Nairobi, Kenya
Customers: 3+ million (as of 2025)
Core Markets: Kenya, Uganda, Nigeria, Ghana
Model: Pay-as-you-go digital financing
Products: Solar kits, smartphones, fridges, e-bikes, cash loans
Technology: Embedded mobile payments and IoT-enabled asset locking
M-KOPA’s insight was simple, but powerful: while many African consumers cannot afford to pay $100 upfront for a product, they can pay $0.50 a day.
By embedding mobile money into its model, M-KOPA enabled users to make daily micropayments for high-value items. Products are connected via IoT to M-KOPA’s platform, meaning devices can be remotely activated or deactivated based on payment status—giving both the customer and the business clarity and control.
This model has opened doors for customers traditionally locked out of formal credit systems. A customer can walk into a shop with no credit history, pay a small deposit for a smartphone, and start using it immediately—with ownership built over time.
From Solar to Smartphones—and Beyond
M-KOPA began with solar lighting systems, serving off-grid households in Kenya. But it quickly became clear that the same model could support a broader range of products critical to upward mobility.
Today, M-KOPA finances:
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Smartphones (in partnership with Samsung and Safaricom)
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Refrigerators and TVs for rural and peri-urban households
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Electric motorbikes, supporting low-carbon mobility
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Cash loans and health insurance, leveraging customer repayment data
This product diversification has transformed M-KOPA from a solar provider into a consumer fintech platform, with the potential to become the backbone of asset-based lending in emerging markets.
Enabling Credit Where None Exists
In markets where less than 10% of adults have formal credit histories, M-KOPA’s platform generates valuable alternative data. Repayment behavior is tracked in real-time, creating a dynamic profile of a customer’s creditworthiness.
This data unlocks second and third-tier products—such as higher-value loans, device upgrades, and service bundles. Customers who complete payments successfully often receive new financing offers automatically, reinforcing a positive credit cycle.
By turning usage into a form of collateral, M-KOPA is rewriting the rules of financial inclusion.
Capital and Scale
M-KOPA has attracted strong investor interest, raising more than $250 million in equity and debt from backers including Generation Investment Management, CDC Group (now British International Investment), Lightrock, and the IFC.
This capital has fueled regional expansion and enabled the company to invest in its core platform, including:
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Proprietary credit scoring models
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IoT infrastructure and asset tracking
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Customer support systems with multi-language capabilities
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Last-mile delivery and servicing logistics
As of 2025, M-KOPA serves over 3 million customers, with aggressive plans to double that figure by 2027—particularly in West African markets, where smartphone demand is surging and energy access remains limited.
What the Industry Can Learn
M-KOPA’s model offers a blueprint for how technology, finance, and infrastructure can be combined to drive inclusive growth:
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Affordability unlocks markets. When pricing aligns with daily income, whole new customer segments become viable.
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Ownership builds dignity. Unlike rental or donation models, M-KOPA’s customers become owners—creating long-term economic agency.
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Data is credit. Behavior-based lending can outperform traditional credit scoring in emerging markets.
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Distribution matters. Physical networks, after-sales support, and local partnerships remain essential, even in digital-first models.
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Climate alignment is a bonus. PAYG solar and e-mobility not only serve the poor—they also support the transition to cleaner, more resilient infrastructure.
The Road Ahead
M-KOPA is entering its next chapter: scaling its model beyond energy and telecom into adjacent sectors like health, education, and agriculture. Its platform may soon be used to finance school fees, solar irrigation pumps, or portable diagnostics—always with the same principle: small, consistent payments leading to life-changing access.
The bigger story is this: M-KOPA is not just a financing platform. It is an on-ramp to the digital economy, giving millions of people not only the tools to participate—but the dignity to own them.
About the Author
Aurel Kinimbaga is a financial inclusion analyst and contributor focusing on asset financing, last-mile distribution, and digital credit models in emerging markets. His work explores how fintech can bridge systemic access gaps across Africa and beyond.
