Kenyans took to their social media pages to support ‘The Lipa mdogo mdogo schemes’ for phones, after a recent Kenya National Bureau of Statistics (KNBS) survey, which revealed that buyers pay KSh 36,000+ for phones retailing at KSh 18,000- KSh 20,000.
The survey indicated that a bigger percentage of Kenyans have resorted to using the Lipa pole pole phones, despite knowing the high costs and shortcomings that are associated with this plan.
The FinHouse survey conducted in 2024, revealed that buyers often end up paying high amount than the retail prices of the phones, due to high interest rates and daily installment fees, but despite this revelation, KNBS found out that the number of people using Lipa pole pole services has skyrocketed from 579,242 in 2021 up to 1, 751, 994 in 2024.
The scheme has various drawbacks like retailers installing apps on the phones, which allows them to remotely switch off the phone whenever the buyers defaults from paying according to the initially agreed terms among others.
KNBS further revealed that 53.7% Kenyans own a phone, majority of this population being the urbanites. The survey also revealed that 11.3% Kenyans use phones they don’t own or borrowed phones, with highest percentage being the urban residents with 11.8%, compared to rural areas which falls at 11.0%
Most Kenyans were in support of the scheme, and said that KNBS was making a big deal, since people willingly buy those phones without any form of compulsion or coercion.
” How many Kenyans can afford that 20k at once? But they can raise 90 bob in a day to pay for the phone. Banks, loan sharks, car sellers, furniture sellers, everyone knows that lipa pole pole is an affordable option for many. That’s why almost everyone is offering the option.” Ms. Matei said
” How about quantifying the benefits of getting something that you never afforded today. Probably more than the cost! E.g If today you are given a car and a house of your choice to pay in installments would you reject? I don’t know. Maybe it’s more than the cost.” Musembi Musyimi said.
However, some Kenyans who have had nasty experience with the Lipa mdogo mdogo phones cautioned people against buying them and encouraged people to go for the down payment option or rather wait until they have saved enough to buy a phone.
“Modern day exploitation disguised as convenience,” Michael Onimbo said.
Despite the extortion claims surrounding the Lipa mdogo mdogo phones, there is no doubt that it is a master stoke that looks punitive but truly paves the way for those with courage and determination to dream big in their own way.
” Over 60,000 Kenyans have purchased their first ever smart phone through lipa mdogo mdogo.” Safaricom CEO Peter Ndegwa revealed sometime back.
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