Jumia and Watu are teaming up to offer smartphone financing in Kenya – with a catch.

A new deal between online retail giant Jumia and asset financier Watu Credit could soon put a new smartphone in your hands, even if you can’t afford to pay for it all at once. The two companies are launching a Buy-Now-Pay-Later (BNPL) program that allows Kenyans to purchase smartphones and pay for them in daily, weekly, or monthly installments using mobile money.

The partnership aims to tackle a key issue in Kenya’s digital landscape: while around 80% of the population has a smartphone, many are using low-quality devices that limit their access to the digital world. By offering financing for premium brands like Samsung, Jumia and Watu hope to get more powerful and reliable devices into the hands of first-time buyers and those looking to upgrade.

“Access to affordable smartphones is no longer a luxury, but a necessity,” said Erick Massawe, Country Manager at Watu Credit. The company’s financing model is designed to help customers build a credit history while getting access to a device that can be essential for work, school, and staying connected.

But there’s a tech-heavy twist to this deal. Watu Credit uses IoT-based locking software to ensure that customers keep up with their payments. The device will only remain active as long as the installment plan is up to date. This system has allowed Watu to finance nearly two million devices in Kenya since 2022, but it also raises questions about device ownership and control.

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For Jumia, this partnership is a natural fit. “Smartphones are among our top-selling products,” said Vinod Goel, Jumia’s East Africa Regional CEO. “By partnering with Watu, we can expand access to connected devices, making it easier for Kenyans to participate in the digital economy.”

Initially, the financing will be facilitated by Jumia’s agents, but the long-term goal is to make the entire process digital. Soon, customers will be able to select a device on Jumia’s website, complete the KYC (Know Your Customer) process online, and have their new smartphone delivered directly to them.

This initiative is about more than just selling phones. It’s a step towards greater digital inclusion in Kenya, with the potential to empower small business owners, delivery workers, students, and families. By combining Jumia’s massive online marketplace with Watu’s financing model, this BNPL program could turn smartphones from simple gadgets into powerful tools for economic and social growth.