This archive report was first published on 12 July 2021.
Published on July 12, 2021, Safaricom's innovative 'Lipa Mdogo Mdogo' campaign has made it possible for Kenyans to acquire a 4G device at an affordable price. For as little as KES 20 a day, customers can own a smartphone, marking a significant milestone in the country's transition to 4G technology.
Between July 28, 2020, and March 2021, Safaricom sold 4G phones to approximately 250,000 Kenyans, averaging over 1,000 customers per day. This remarkable achievement is a testament to the company's commitment to expanding 4G coverage and upgrading its customer base.
The 'Lipa Mdogo Mdogo' campaign was launched after Safaricom sold nearly 1 million units of its Neon-branded smartphones. The company introduced the Neon Ray PRO smartphone, which was made available under the new financing plan. While some may view this as a strategy to attract more customers, Safaricom's primary goal was to transition its users from 2G to 4G spectrum.
At the time, Kenya had approximately 77% 4G coverage, but only 17% penetration in terms of 4G devices. Safaricom aimed to achieve full 4G coverage and transition its entire customer base to 4G. According to the company, the 'Lipa Mdogo Mdogo' campaign has been successful, with over 60% of customers upgrading from 2G and 3G to 4G, representing a year-on-year growth of 39.8% in 4G devices.
This growth has contributed to a 31.1% increase in the number of customers using more than 1GB of data. While the 'Lipa Mdogo Mdogo' plan has been successful, Safaricom is yet to launch a full-fledged device financing plan that allows customers to choose from a variety of smartphones with monthly repayments that include data and minutes.
