Kenyan asset-financing company M-KOPA has reported a major financial turnaround, posting a Ksh 1.2 billion ($9.2 million) profit in 2024 after years of losses.
The Nairobi-based firm, which operates across several African markets, including Uganda, Ghana, Nigeria, and South Africa, recorded the milestone following a Ksh 3.2 billion ($24.7 million) loss in 2023, according to reports referencing its latest financial filings in the United Kingdom.
The company noted that the profit is not just a financial milestone but a reflection of its steady growth strategy, responsible lending model, and dedication to creating lasting social and economic impact across Africa.
“Achieving a profit for the first time in 2024 reflects our continued commitment to building a long-term, impactful, and sustainable business,” M-KOPA told Tech Cabal in a statement.
From Solar Kits to Digital Finance-M-KOPA
Founded in 2011, M-KOPA started as a provider of solar home systems on a pay-as-you-go model, aiming to bring affordable, clean energy to low-income households.
Over time, the company diversified its offerings to include smartphones, cash loans, and insurance products, enabling customers with limited access to traditional banking to build financial credit through small daily payments.
This evolution has transformed M-KOPA into a leading digital finance platform in Africa, providing financial inclusion to millions of people across Kenya, Uganda, Nigeria, and Ghana.
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The firm’s growth strategy has been anchored in technology-driven lending, using customer data and mobile payment systems to offer flexible credit options.
Record Growth and Stability
This profit marks M-KOPA’s first-ever positive earnings in more than a decade of operations.
The company’s revenue surged by 66 per cent, reflecting growing demand for its products and services.
Analysts attribute this success to the M-KOPA’s ability to adapt its business model to customer needs and strengthen its repayment systems through partnerships with major mobile network operators.
The turnaround comes amid rising competition in Africa’s fintech space, where access to affordable digital credit remains a challenge for many.
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M-KOPA’s model, which allows users to own assets such as solar panels and smartphones through instalment payments, has positioned it as a key player in advancing financial and energy inclusion across the continent.
M-KOPA Disburses Over KSh 310 Billion in Credit to 7 Million Africans
From a report published on September 22, Africa-focused asset financing firm M-Kopa disbursed more than KSh 310 billion in credit to 7 million customers in five countries since it was founded.
“The company projects that it will reach 10 million customers by 2030,” M-KOPA noted.
Most of the funds went to a smartphone financing service through which M-Kopa allows low-income consumers to buy devices by paying in installments, Chief Product Officer Nena Sanderson told Semafor.
“The company also financed digital loans, health insurance, and electric motorcycle purchases in its largest market, Kenya,” Sanderson said.
The company hedges against risk by temporarily locking borrowers out of their smartphones during periods of payment default, she said, though it doesn’t charge late fees.
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