M-KOPA is in the spotlight again after another customer complained that their phone stopped working shortly after completing the loan repayment.
According to the detailed report shared by Cyprian Is Nyakundi, the UK-based company, which sells phones and solar products on credit, has been accused of unfair practices that leave customers frustrated after clearing their payments.
A source shared that their nanny’s phone, which she had paid for over a year, became unusable just weeks after clearing the last installment. The phone, a Samsung model, now shows a recovery mode screen with error messages, making it impossible to use. Attempts to fix it have failed, and when they reached out to M-KOPA for help, the company told them to take the phone for repairs.
The source said the nanny had been called by M-KOPA to take another loan and later to buy a new phone, but she declined both offers. A week later, the phone stopped working.This case is similar to what other customers have reported.
A few days ago, another person shared that their phone also failed two weeks after they completed payment. They had also refused to take another loan from M-KOPA. When they contacted the company, they were told the phone was no longer under warranty and nothing could be done.
Many customers now believe that M-KOPA deliberately interferes with devices to push them into taking more loans. This has raised concerns that the company is taking advantage of people who buy phones from them, most of whom are low-income earners.
Some have questioned why a phone that worked perfectly for a whole year would suddenly stop working immediately after the last payment.
M-KOPA started by selling solar home systems on credit before expanding to phones and other items. However, complaints have been piling up over the years, with many saying that their solar kits and phones stop working soon after completing payments.
Some customers have even said that M-KOPA refuses to unlock phones even after they are fully paid, forcing them to keep using the company’s software for another year.It is not only customers who have raised issues with M-KOPA.
Workers have also spoken about poor working conditions in the company. Employees, especially those working in warehouses, have complained of being forced to work long hours without overtime pay. Some night shift workers said they worked 12 hours but were only paid for 8.
Complaints about mistreatment by managers have also emerged, with some workers saying they were insulted and even physically harassed.
Another major issue surrounding M-KOPA is its ongoing tax dispute with the Kenya Revenue Authority (KRA). The company has been accused of inflating the number of customers who failed to pay their loans so that it could avoid paying taxes.
In 2024, KRA said that M-KOPA claimed over 47,000 customers had defaulted, but industry experts estimated the number was much lower, around 20,000.M-KOPA told the Tax Appeals Tribunal that it would cost them Ksh 952.5 million to recover the loans, which was three times the actual amount owed.
They also claimed that taking each customer to court would cost Ksh 109,640 per case, making it too expensive to pursue defaulters. KRA was not convinced and accused the company of using the situation to avoid taxes.
The tribunal initially ruled in M-KOPA’s favor, but many people questioned whether the company was being honest about its figures.There were also reports that M-KOPA had included customers who bought electric bikes on credit in its list of defaulters, which may have made the numbers look worse than they really were.
KRA has been considering taking the matter to the High Court to challenge M-KOPA’s claims.This is not the first time M-KOPA has tried to avoid paying taxes.
In the past, the company argued that since it is registered in the UK, it should not pay taxes in Kenya under the Kenya-UK Double Taxation Treaty.
However, the tribunal ruled that because M-KOPA’s main business decisions are made in Kenya, the company must pay local taxes.KRA initially demanded Ksh 308.5 million from M-KOPA in unpaid taxes, but the amount was later revised to Ksh 193.7 million.
Despite this, the company has continued to resist paying, leading to calls for a full audit to reveal what is really happening.M-KOPA has received huge financial support from international investors, including a Ksh 1.9 billion loan from General Investments Management, a fund linked to former U.S. Vice President Al Gore.
However, its growing number of complaints, both from customers and employees, is painting a different picture of how the company operates.
Many people feel that M-KOPA is taking advantage of low-income customers by selling them phones that stop working after payments are completed. Others believe that the company is avoiding its tax obligations by inflating the number of defaulters.
With all these issues coming to light, it remains to be seen whether M-KOPA will change its ways or continue facing more complaints in the future.
