NAIROBI, Kenya-In Nairobi’s Industrial Area, a fast-growing smartphone assembly plant operated by M-Kopa is quietly reshaping Kenya’s technology manufacturing sector, producing up to 7,500 smartphones daily as the country pushes to become a regional electronics assembly hub.
The facility, which began operations in January 2023, now runs three assembly lines capable of producing about 150,000 smartphones monthly.
According to M-Kopa Kenya General Manager Martin King’ori, each line manufactures approximately 2,500 devices per day.
“Every line does 2,500 devices, which means per day, 7,500. Monthly, we can comfortably do 150,000,” King’ori told Business Daily.
The factory represents one of the clearest signs yet of Kenya’s growing ambitions in local electronics manufacturing, driven largely by government tax incentives aimed at reducing dependence on imported devices.
M-Kopa initially partnered with Finnish phone maker HMD Global, the manufacturer of Nokia-branded phones, before shifting focus primarily to its own branded smartphones targeted at low-income consumers.
The company assembles devices using components sourced mainly from original design manufacturers (ODMs) in China, with the process involving installation of more than 55 individual parts, including cameras, storage chips, connectors, and charging ports.
Android software is later installed using licensed systems from Google.
Kenya’s local smartphone assembly push accelerated after the government introduced a 10 P.c excise duty on imported phones in addition to the existing 25 P.c import duty.
Later, in June 2023, the government zero-rated locally assembled phones, making domestic production more financially viable.
King’ori said the policy changes significantly boosted output.
“Today, we have done 3.2 million devices,” he said, adding that the company crossed the one-million-unit mark within a year of operations.
M-Kopa’s business model relies heavily on pay-as-you-go financing, allowing customers to acquire smartphones through instalment plans.
Devices can be remotely locked if repayments are not completed, a model that has expanded smartphone access among lower-income users.
Alongside manufacturing, the company also runs a refurbishment unit that repairs and resells used devices at lower prices.
The facility currently refurbishes about 500 phones daily and can increase output to 800 units based on demand. More than 300,000 phones have already been refurbished, according to the company.
The broader local assembly sector is also attracting other players.
East Africa Device Assembly Kenya (EADAK), a Safaricom-led joint venture involving Jamii Telecom and Chinese partners, disclosed that it sold 360,000 locally assembled smartphones during its first full year of operations at its Athi River plant.
Safaricom Chief Executive Peter Ndegwa previously said locally assembled smartphones could be up to 30 P.c cheaper than imported devices, helping increase access to 4G-enabled phones.
M-Kopa says it currently employs about 450 workers, 40 P.c of whom are women, while also supporting a distribution network of roughly 15,000 agents.
However, manufacturers continue to face policy and taxation challenges.
While finished smartphones are zero-rated, imported components still attract 16 P.c VAT, which firms must reclaim through tax refunds, a process manufacturers say delays cash flow and ties up working capital.
The sector also faces competition from untaxed or illegally imported devices entering the Kenyan market through unofficial channels.
Still, Kenya’s local smartphone industry is gaining momentum as the country pushes digital inclusion and transitions toward modern device standards, including a recent move requiring USB Type-C charging ports for all phones sold locally.
