Kenyan asset financing company, Watu, has posted a record profit of $37 million, driven largely by rising demand for smartphone financing across Africa.

The company’s latest financial performance highlights the growing appetite for device financing services, especially among young consumers and small business owners who rely heavily on smartphones for communication, business and digital transactions.

Watu, widely known for financing motorcycles and mobile devices, has seen rapid expansion in its phone financing business as more Africans turn to flexible payment options to access smartphones without paying the full cost upfront.

Industry observers say the boom reflects the increasing importance of digital connectivity across the continent, where smartphones have become essential tools for banking, e-commerce, education and remote work.

The company’s strong earnings also underline the wider growth of Africa’s fintech and consumer credit sectors, with firms increasingly targeting underserved populations who struggle to access traditional banking loans.

Analysts note that the rise in smartphone financing is helping accelerate internet penetration and digital inclusion, particularly in East Africa where mobile technology continues to shape economic activity.

Watu’s growth comes at a time when competition in Africa’s asset financing market is intensifying, as more companies explore buy-now-pay-later models and consumer lending solutions tailored to emerging markets.