In early April, Safaricom announced a new device financing model dubbed Lipa Mdogo Mdogo. The announcement was made during the company’s Full-Year Financials results press conference and was estimated to go live in June. The model is late by about a month but the model is now underway.
Safaricom Lipa Mdogo Mdogo
This Lipa Mdogo Mdogo model is being widely used in Western countries. Essentially, customers get a device that is locked to a particular network and pay a fixed amount of money every month for a period of about two years.
Here’s what the Safaricom CEO, Peter Ndegwa, had to say about the model at the event in April:
“Lipa Mdogo Mdogo will help the mwananchi who earn their wages daily acquire a range of smartphone and pay in easy daily instalments for as low as KES 20. This is all while enjoying all the benefits that come with being digitally connected.”
What We now So Far
Following a three month waiting period since the announcement the model is now here with us. The model looks to target members of low-income households who do not have budgets for a flagship device.
The telco is partnering with Google to offer one million affordable smartphones. Business Daily also notes that the offer will also be available for all phones and the daily repayments will increase from KES 20 if subscribers go for high-value smartphones.
Following other features like this from Western countries, the devices will very likely be locked to Safaricom subscribers. In terms of devices, at the moment, we can only confirm that the Neon Ray Pro will be up for grabs under the Lipa Mdogo Mdogo program.
The phone currently costs KES 6000 but you can pay 20 bob a day for this phone
To get the service, you need:
- To have been using a 2G phone
- To have been using Safaricom products, (calling, texting, data) for at least a year.
- A down payment of KES 1,000
Safaricom states that there are three ways to pay. You can pay 20 bob daily, 140 bob weekly or pay what you can when you can.
For example you can pay KES 200 today and 100 tomorrow, depending on how much you have.
Additionally, if one doesn’t pay the 20 bob/amount you usually pay, the phone gets locked and you’ll have to make the payment to unlock the device
The 4G device is also likely to have Android Go making it a much more pleasing bargain.