Apple Unveils Innovative iPhone Leasing Program in the United States
Apple has introduced a pioneering leasing initiative in the U.S., enabling consumers to finance iPhones and other electronic devices through manageable monthly payments.
- The model “lipa mdogo mdogo,” which translates to “pay gradually,” has become entrenched in various sectors including technology, retail, healthcare, and banking within the Kenyan marketplace.
- Telecommunications titan Safaricom and other enterprises such as M-Kopa are actively providing smartphones via daily and weekly installment schemes.
This launch has incited discussions about the potential for Apple to expand a similar model into broader markets, particularly where flexible smartphone payment options are generating substantial interest.
Recently, the tech colossus disclosed the Apple Upgrade program, which allows American consumers to lease iPhones, iPads, Macs, and Apple Watches through recurring monthly fees instead of outright purchases.
Beginning at USD 17.99 (approximately KSh 2,300) monthly, the leasing framework permits customers to return, upgrade, or acquire their devices upon concluding the lease period.
Currently, there is no indication from Apple regarding the international expansion of this innovative program.
Kenya’s Buy Now, Pay Later Sector on the Ascendancy
Analysts suggest that Kenya is strategically positioned should Apple decide to implement this leasing scheme beyond the borders of the U.S.
The forecast indicates that Kenya’s buy now, pay later (BNPL) market is projected to reach KSh 180 billion (USD 1.39 billion) by 2026, exhibiting a remarkable compound annual growth rate of 28.2% from 2022 to 2025, as per a recent report from Research and Markets.
This same report anticipates further expansion, estimating the sector will balloon to KSh 478 billion (USD 3.69 billion) by 2031. This growth is attributed to the increasing adoption of smartphones, enhanced digital financial services, and a burgeoning need for short-term financing.
The “lipa mdogo mdogo” concept, which facilitates payment in small installments, is already a core feature of offerings from prominent telecommunications providers.
Safaricom, in collaboration with Google, operates an initiative branded similarly, allowing customers to secure smartphones for as little as KSh 20 daily via M-Pesa, with repayment tenures extending up to 12 months.
The rising demand for affordable financing solutions has attracted a multitude of firms to the sector. Digital lender Mogo, for example, established its presence in Kenya in August 2025, financing over 200,000 smartphones in a mere nine months and surpassing 500,000 devices throughout East Africa within 14 months.
Mogo has partnered with notable brands including TECNO, Infinix, itel, and OPPO, requiring clients to present a national ID, a six-month M-Pesa statement, along with an initial deposit ranging from 23% to 35%.
Additional players in this burgeoning market include Xiaomi Kenya, which kicked off an installment campaign dubbed “JiUpgrade Bila Stress,” and Jumia, which has allied with Watu Credit to facilitate device payments via mobile money. Since 2022, Watu Credit has financed nearly two million devices in Kenya.
As of June 2025, smartphone penetration in Kenya reached 83.5%, with over 42 million users—indicative of the vast opportunities that await any company aiming to penetrate the leasing market.
Source link: Tuko.co.ke.
