The East Africa Device Assembly Kenya (EADAK) Sold 360,000 devices being Inaugurated on its Blast-off in October 2023

By Abdul Rahman Bangura-

Photo Credit: Kanere.org

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- The device assembly plant is a steering initiative by the
Administration of Kenya’s local mobile operators, and international device manufacturers to assist in the increase affordability of devices, and develop assembly capability. The factory has a capacity of up to three million mobile phone units annually.

Kenya’s Administration decreased the costs of importing some of the components, enhancing the reduction of the cost of a smartphone by 30%.

“This assembly plant will support government’s agenda to enhance digital inclusion in the country. We have been able to achieve affordability through a collaborative approach that comprises industry partnership and favourable government policies,” said Joshua Chepkwony, Chairman of EADAK and Chairman & CEO of Jamii Telecom.

Mobile operators have introduced device financing schemes to support device affordability, for example Safaricom has partnered with Google on the Lipa Mdogo Mdogo scheme.

Additionally, it is projected that the factory will generate between 300 and 500 direct jobs, foster local talent development and contribute
to the country’s economic growth.

“The launch of EADAK reaffirms our belief in the power of connectivity to transform lives and drive economic progress. This partnership
underscores our relentless pursuit to expand 4G access and empower Kenyans through affordable, high-quality smartphones, create employment opportunities and grow our economy,” Peter Ndegwa, CEO of Safaricom noted.

The revelation of the Ksh2 billion revenue from locally assembled devices is in the GSMA 2024 Kenya Digital Economy Study inducted this week in a ceremony attended by Cabinet Secretary Ministry of Information and Digital Economy Margaret Ndungu.

Evolution of mobile internet connectivity in Kenya and comparison with other countries in 2023. Source: GSMA 2024 Kenya Digital Economy Study.

“This report identifies a series of policy recommendations that, if implemented, will close the internet usage gap from the current level of over 64% of the population to 51% in 2028. This would result in 49% of the population of Kenya being connected to the Internet, equivalent to over 10 million additional people.”

The priority policy reforms are in tax restructuring in the telecommunication industry to primarily navigate usage, implementation of policies and programmes to bolster device affordability, assuring a sustainable and predictable investment environment.

Other area is in supporting productive use of digital technologies by businesses across economic sectors, with highlighted policies to augment digital skills and human capital, support MSMEs and startups and prioritize context appropriate technologies and local needs.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent