Small-scale business owners and low-income earners in Kiambu County are increasingly turning to installment payment plans to acquire smartphones, as demand for affordable digital access continues rising across the region.
The “Lipa Mdogo Mdogo” financing model has gained popularity among boda boda riders, campus students, mama mbogas, and small traders who are unable to afford smartphones through one-time payments.
Under the arrangement, customers pay a small deposit before completing the remaining balance through daily or weekly installments, making smartphone ownership more accessible to ordinary Kenyans.
Phone dealers in Kiambu say the payment model has significantly transformed access to digital services among low-income earners.
According to John Njuguna, a smartphone dealer in Kiambu Town, many customers who previously struggled to purchase smartphones are now able to own internet-enabled devices through manageable repayment plans.
“Many people, especially students, boda boda riders, and small traders, are now able to own smartphones through manageable installments,” Njuguna said.
He noted that smartphones have become essential tools for communication, business, online learning, and mobile money transactions.
For university and college students, smartphones are increasingly being used to access online classes, research materials, assignments, and communication with lecturers.
At the same time, boda boda operators and small business owners are relying on smartphones for customer communication, mobile banking, and online marketing.
Several customers interviewed said the financing option is more convenient compared to waiting months to save enough money for a new phone or applying for expensive loans.
However, despite its growing popularity, the model has also attracted criticism from some users.
Some customers complain that the final repayment amount becomes significantly higher than the original phone price due to service charges and financing costs.
Others say daily repayment schedules become difficult during harsh economic periods when business is low and income unstable.
Dealers also confirmed that financed phones can sometimes be temporarily locked when users fail to make payments on time, limiting access to calls, internet services, and mobile money platforms until repayments resume.
Despite the challenges, Njuguna said the model continues to bridge the digital access gap by connecting more people to internet services and digital opportunities.
Meanwhile, concerns are emerging over the possible impact of the proposed Finance Bill 2026, which seeks to introduce a 25 percent excise duty on smartphones and other communication devices.
Treasury Cabinet Secretary John Mbadi has defended the proposal, saying the new taxation structure is intended to simplify taxes and reduce the overall burden on imported phones.
Mbadi maintained that smartphone prices would not increase under the proposed changes
