Kenya’s M-Kopa Secures USD 51 M Debt From DFC

M-KOPA, a fintech platform operating in Kenya and four other African countries, has secured a USD 51 M loan from the U.S. International Development Finance Corporation (DFC) to enhance digital connectivity across Kenya. This funding will enable the company to provide affordable smartphones to underserved communities, thereby expanding access to digital financial services for underbanked individuals. DFC alo announced it was going to open a regional office at the U.S. Embassy in Nairobi to support private sector development in Kenya and across Africa.

Last year, M-KOPA secured over USD 250 M in new debt and equity funding to expand its financial services offering to underbanked consumers across Sub-Saharan Africa. Present in Kenya, Uganda, Nigeria, and Ghana, M-Kopa is known chiefly for its pay-as-you-go (PAYG) financing model that allows customers to build ownership of appliances over time by paying an initial deposit followed by flexible micro-payments. The asset financier also intends to: extend its financial services offerings and product sets and reduce greenhouse gas emissions in Kenya and Uganda, where its solar product is more prominent.