Updated 1 November 2026
You can return a phone on Lipa Mdogo Mdogo to M-KOPA at any time during the agreement and walk away from the remaining payments, but you cannot sell an asset you are still paying for without the lender’s consent, and your account cannot be transferred to a buyer. This guide sets out the return, upgrade and resale rules in M-KOPA’s and Watu’s published Kenyan terms, and what you lose in each case, so you know how to return a phone on Lipa Mdogo Mdogo without surprises.
Updated November 2026. Based on M-KOPA Kenya’s terms of service and Watu Credit’s Summarised General Terms (Kenya), read 1 November 2026. Your signed agreement prevails.
Return, sell or upgrade: the short answer
| What you want | M-KOPA | Watu |
|---|---|---|
| Return the item and stop paying | Allowed at any time if the phone works and has no M-KOPA cash loan or other encumbrance on it | Not described in the summary for vehicles; ask the branch |
| Get money back | Deposit refunded in full or in part depending on condition; daily payments are non-refundable | If a repossessed vehicle is sold for more than you owe, you get the difference |
| Sell to someone else | Your account is personal and cannot be transferred | Cannot sell before the loan is paid without Watu’s prior written consent |
| Upgrade | Trade-in-to-upgrade after 180 days and 180 credits paid, if up to date | Not offered in the summary |
How to return a phone on Lipa Mdogo Mdogo (M-KOPA)
Clause 19 of M-KOPA’s terms says you may return the product, if it is in good working condition, to any M-KOPA retail store or qualified dealer at any time during the agreement, as long as you have no existing M-KOPA cash loan and no third-party commitments attached to the phone. M-KOPA evaluates it, and you:
- may get a refund of your initial payment (deposit), in full or in part depending on the phone’s condition; and
- are released from the remaining credit payments.
What you don’t get back: the credit payments you have already made. Clause 3 says they are non-refundable even if you return the product. You also remain responsible for the phone until an M-KOPA agent receives it, so if you send it with a courier or boda and it is lost, you still owe the payments.
Before handing it in, back up your data, remove your Google or Samsung account and factory reset the phone, as M-KOPA requires for its return programme.
Upgrading with trade-in
M-KOPA’s trade-in-to-upgrade programme lets you swap an eligible phone for another M-KOPA device. You must have used it for at least 180 days, paid at least 180 credits and be up to date. M-KOPA grades the phone and gives it an “incentive value” towards the new device. The trade is non-refundable and you permanently give up ownership of the old phone. Ask for the new phone’s full instalment total before agreeing, and compare it with the cash price using our true cost guide.
Why selling a phone or boda still on instalments is risky
For the seller: you stay liable. M-KOPA’s account “cannot be assigned or transferred to a third party”, so selling the phone does not move the debt. If the buyer stops paying, the arrears, any lock and any CRB listing are yours.
For the buyer: the phone can be locked at any time if the original account falls behind, and you have no rights against M-KOPA. Its terms say third parties who pay into an account get no claim to the product.
For motorbikes: Watu’s summary says you are the “economic owner” while repaying but become legal owner only after the loan is paid in full, and you cannot sell before then without Watu’s written consent. A buyer of a financed boda risks repossession. Check the logbook position before you buy any second-hand bike.
Lost or stolen phone
M-KOPA’s terms say it does not track or recover lost or stolen products. Report the loss to the police, and expect to keep paying the balance for an out-of-warranty loss unless you have bought cover. Check whether your plan includes product protection.
Checklist before you return or sell
- Check your arrears and whether any M-KOPA cash loan is tied to the phone.
- Get the trade-in or return offer in writing (SMS or app).
- Back up and factory reset the phone.
- Hand it in in person and get an acknowledgement.
- Confirm in the app that the account is closed.
Related: hire purchase vs buy now pay later explains which law covers your plan, and Watu Simu covers Watu’s phone offer.
Frequently asked questions
Can I return an M-KOPA phone and stop paying?
Yes, if it is in good working condition and has no M-KOPA cash loan or other encumbrance attached. You are released from the remaining payments, but daily payments already made are not refunded.
Will I get my deposit back if I return the phone?
Possibly. M-KOPA’s terms say the initial payment may be refunded in full or in part depending on the phone’s evaluated condition.
Can I sell my Watu motorbike before finishing the loan?
Not without Watu Credit’s prior written consent. You become the legal owner only after the loan is paid in full.
Can I transfer my M-KOPA account to someone else?
No. M-KOPA says accounts are personal and cannot be assigned or transferred.
Sources: M-KOPA Kenya terms of service (clauses 2, 3, 15 and 19); Watu Credit Summarised General Terms (Kenya). Read 1 November 2026.
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