"Lipa mdogo mdogo": Could Apple launch its new iPhone leasing plan in Kenya?

This story has significance for readers across Kenya and beyond.

- Apple launched a new leasing programme in the US allowing customers to pay for iPhones and other devices through monthly instalments

- The "lipa mdogo mdogo" (pay slowly) model has become embedded in sectors ranging from tech and retail to health and banking in the Kenyan market

- Telecom giant Safaricom and companies like M-Kopa are already offering smartphones through daily and weekly instalment plans

Apple launched a device leasing programme in the United States.

This has prompted speculations about whether the tech giant could extend a similar model to other markets where flexible payment schemes for smartphones are already gaining significant traction.

This week, the company unveiled Apple Upgrade, a programme that lets US customers lease iPhones, iPads, Macs and Apple Watches through recurring monthly payments rather than buying devices outright.

Under the scheme, iPhone leases start from USD 17.99 (approximately KSh 2,300) per month, with customers able to return, upgrade or purchase their device once the lease term concludes.

Apple has made no announcement regarding an international expansion of the programme.

Kenya's BNPL Market on a Growth Trajectory

Industry figures suggest Kenya could be well-positioned should Apple opt to roll the scheme out beyond the US.

The country's buy now, pay later market is forecast to reach KSh 180b (USD 1.39b) in 2026, having grown at a compound annual rate of 28.2% between 2022 and 2025, according to a Research and Markets report.

The same report projects the sector will expand to KSh 478b (USD 3.69b) by 2031, driven by rising smartphone adoption, digital financial services, and strong demand for short-term credit.

The "lipa mdogo mdogo" concept, loosely translated as paying in small instalments, already underpins offerings from major telecoms.

Safaricom, in partnership with Google, operates a programme of the same name that lets customers acquire smartphones for as little as KSh 20 per day through M-Pesa, with repayment periods stretching up to 12 months.

The appetite for affordable device financing has drawn a growing number of companies into the market. Digital lender Mogo entered Kenya in August 2025 and financed more than 200,000 smartphones within nine months, having crossed 500,000 devices across East Africa in 14 months.

The company works with handset brands including TECNO, Infinix, itel and OPPO, requiring customers to present a national ID, a six-month M-Pesa statement and an upfront deposit of between 23% and 35%.

Other entrants include Xiaomi Kenya, which launched an instalment campaign branded "JiUpgrade Bila Stress," and e-commerce platform Jumia, which has partnered with Watu Credit to offer device repayments via mobile money. Watu Credit has financed close to two million devices in Kenya since 2022.

Smartphone adoption in Kenya stood at 83.5% as of June 2025, with over 42 million users, a figure that underscores the scale of the opportunity for any company looking to enter the leasing space.

Source: TUKO.co.ke

Reporting originally appeared via TUKO. Read the full source for additional context.