How Watu Holdings Expansion into Phones and Hybrid Bikes Boosted Growth

Watu Holdings, which finances motorcycles, three-wheelers, and smartphones in East Africa, saw profits rise sharply in 2025 due to product expansion and regional growth.

The firm posted a net profit of Ksh 4.8 billion in 2025, up from Ksh 328 million in 2024, reflecting a significant increase in earnings.

Its revenue also grew strongly by 92.7% to Ksh 28.3 billion from Ksh 14.7 billion a year earlier.

Watu Growth Driven by Smartphone Financing and Regional Expansion

The latest financial statements from Car & General, which owns a 29% stake in Watu Holdings, show the company continued to expand across the region, supported by growth in its smartphone financing business under Watu Simu.

Car & General said the strong performance was driven by increased demand for financed motorcycles, three-wheelers and mobile phones in several African markets.

Over the years, Watu has built its business by helping customers acquire boda bodas through flexible financing plans.

Building on its success in motorcycle financing, the company later expanded into smartphone financing and hybrid motorcycles, widening its customer base and increasing revenue streams.

The entry into phone financing through Watu Simu has especially boosted the company’s growth as more customers seek affordable smartphones through instalment payment plans.

The company’s expansion across Kenya, Uganda, Tanzania, and Sierra Leone also helped increase its earnings.

Financial records show Watu Holdings’ current assets rose to Ksh 48.2 billion in 2025 from Ksh 27.5 billion in 2024, while cash reserves increased to Ksh 2.29 billion from Ksh 763.8 million.

Car & General’s share of profit from Watu Holdings jumped to Ksh1.37 billion in 2025 from Sh45.6 million the previous year.

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Growth Through Regional Expansion

Watu Holdings was incorporated in Mauritius in 2021 as an investment holding company.

Its subsidiaries include Watu Credit Kenya, Watu Credit Uganda, Watu Sierra Leone and Watu Tuu Limited in Tanzania.

The company has continued to expand its financing model across East and West Africa, targeting customers who cannot easily access loans from traditional banks.

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In Tanzania, Watu Tuu Limited has been financing motorcycles, three-wheelers, and mobile phones through its subsidiary, Watu Credit Tanzania Limited.

The Tanzanian business also posted strong growth before it was restructured into Watu Holdings in October 2025 through a share swap arrangement.

According to the financial statements, Watu Tuu recorded revenue of Ksh 3.4 billion and profit of Ksh 1.13 billion during the nine months ended September 30, 2025.

Focus on Hybrid Bikes

Watu has also expanded into financing hybrid motorcycles as demand for fuel-efficient transport solutions rises across the region.

The move has helped the company tap into the growing push for cleaner and cheaper transport options among boda boda riders.

At the same time, Car & General said it continues to assemble motorcycles and three-wheelers at its plants in Kenya and Tanzania and plans to expand the facilities further in 2026.

The company also said its BodaPlus business, which deals in helmets and riding gear, became profitable in 2025 as demand for safety products increased across the region.

Car & General added that it is expanding manufacturing opportunities, including the production of riding suits, and currently exports to eight countries.

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Watu Holdings Credit Offices. PHOTO/Watu Holdings