M-KOPA was founded in 2010 by Nick Hughes, Jesse Moore, and Chad Larson. The company’s mission is to make essential products and services more accessible to lower-income households by combining affordable hardware with digital micropayments and mobile connectivity. It started operations in Kenya and has since expanded into Uganda, Ghana, Nigeria, and South Africa.

What They Offer and How It Works

Products: Initially, M-KOPA focused on off-grid solar home systems, which typically include a solar panel, control unit, battery, lights, and phone-charging ports. Over time, the company expanded into TVs, smartphones, and other digital products.

Payment model: Customers make a small upfront deposit and then pay for the system in small, frequent installments through mobile money services such as M-PESA in Kenya. Once payments are completed, the customer owns the product.

Smart technology: Each unit is enabled with GSM connectivity, which allows the company to remotely monitor and control the device. If payments stop, the system can be deactivated until payments resume.

Reach and Impact

M-KOPA has connected hundreds of thousands of households in Kenya to solar power, helping families replace kerosene lamps and expensive phone-charging services.

Millions of customers across Africa have now accessed solar, smartphones, and financial services through its platform.

The approach helps households save money over time while also reducing health risks from kerosene fumes and contributing to cleaner energy adoption.

Benefits

Clean, reliable energy: Provides consistent lighting and phone charging for households that are off the grid or have unreliable electricity.

Financial inclusion: Customers with little or no formal credit history can build a payment record through M-KOPA, giving them access to additional products such as loans, insurance, or health services.

Affordability: Pay-as-you-go installments are sized to fit into daily household budgets, often costing less than traditional fuel sources.

Challenges

Payment defaults: Missed or irregular payments remain a challenge in low-income markets.

Upfront cost: Even the small deposit required can be a barrier for some households.

Maintenance: Solar systems in rural areas face wear, environmental damage, and battery issues, requiring strong after-sales support.

Competition and regulation: Other pay-as-you-go solar providers, import duties, and changing energy policies influence growth.

Capital needs: To scale, M-KOPA requires large amounts of investment and faces risks linked to currency fluctuations and supply chains.

Recent Developments

Diversification: In addition to solar systems, M-KOPA now provides smartphones, digital loans, insurance, and health services in Kenya.

Funding: The company has secured significant financing packages to expand its customer base and product portfolio.

Local assembly: Efforts in local smartphone assembly have been introduced to reduce costs and create jobs in Kenya.