Sun King enters Kenya's smartphone financing race with local assembly
Sun King, a company built on off-grid solar, is now assembling smartphones in Kenya and diving into the country's growing financed-device market. Eleven months after opening its first African manufacturing facility, the firm launched the EZ 3, a phone that requires a small daily payment rather than a hefty upfront sum. This move pits Sun King directly against established players like M-KOPA and Watu, which have long financed smartphones for customers who can't afford to buy them outright. With local production and a massive distribution network, Sun King is betting that affordability and trust will win over Kenyan consumers.
The EZ 3 and PayGo model
The EZ 3 smartphone is available only through a financing contract, not for outright purchase. Customers pay a KES 2,299 ($18) deposit and KES 55 ($0.43) per day for 365 days, totaling KES 22,374 ($173). This model aligns with Sun King's PayGo strategy, which has powered its solar business since entering Kenya in 2009 as Greenlight Planet. Victor Agandi, vice president for PayGo in East and Southern Africa, emphasized that a good phone shouldn't require a large single-day payment, as most people can manage small daily amounts. The device features a 6.75-inch display, 5,000mAh battery, 4GB RAM, and 64GB storage, offering a compelling package for budget-conscious consumers.
Competition and pricing pressure
Sun King enters a segment dominated by M-KOPA, which sells its own smartphones alongside Samsung models with flexible repayment plans. Watu, a digital credit company, also finances Samsung devices. Sun King's own catalogue reveals the competitive pricing: its Tecno Pop 10 and Infinix Smart 10 both require KES 2,799 upfront and KES 55 daily, while the Samsung A06 costs slightly more. By manufacturing locally at a Tatu City plant with capacity for 700,000 units annually, Sun King can potentially undercut rivals on cost. Its extensive agent network, reaching one in five Kenyan households, provides a distribution advantage that could accelerate adoption.
Security and the unlocking threat
The EZ 3 remains unlocked as long as customers keep up with payments, with repayments made via the lock screen, app, SIM toolkit, or USSD. This lock gives Sun King control if payments stop. However, bypass methods like flashing and IMEI alteration have already emerged in Kenya, threatening the security that underpins such financing. An active unlocking market could undermine the model's viability. Yet the demand for smartphones as business tools remains strong: GSMA found that 86% of male and 79% of female micro-entrepreneurs used mobile phones for business in 2024, and a 2026 Nairobi study showed smartphone-based point-of-sale apps improved record-keeping and sales.
Key Takeaways
- Sun King's EZ 3 costs $18 upfront and $0.43/day for a year, totaling $173.
- Local manufacturing in Kenya gives Sun King a cost and supply chain advantage.
- Competition is fierce with M-KOPA and Watu already financing smartphones.
- The PayGo model relies on phone locking, but unlocking threats persist.
- Smartphones are essential for micro-entrepreneurs, driving demand for financing.
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