Eliud Owalo: Cheap Kenya-Made Smartphones To Hit Market Next Month

• President William Ruto's administration laid down plans to facilitate the manufacturing of smartphones locally to sell at KSh 5,000
• ICT and Digital Economy Cabinet Secretary (CS) Eliud Owalo said the government's cheap smartphones will be available in the market next month
• Owalo noted the government partnered with private sector players, including telcos and introduced tax waivers for the manufacturing of the phones

Kenyans will have access to cheap smartphones sold at $40 (KSh 5,708) starting September 2023, ICT and Digital Economy CS Eliud Owalo has confirmed.

President William Ruto's administration planned to facilitate the manufacturing of cheap smartphones by July 2023 in its quest to digitise access to all government services.

Finance Act 2023 provides tax incentives

Owalo revealed that the government introduced tax incentives for the local assembling of smartphones contained in the recently implemented Finance Act 2023.

"There would be incentives to do with taxation. There are some tax waivers we have asked for, and the provisions are already contained in the Finance Act 2023.

"We are at peace, based on the feasibility studies, that these phones will be in the market at a unit cost of $40 by next month (September). We are set... this has been a work in progress," said Owalo, speaking during NTV show on Wednesday, August 2.

Owalo noted the internet-enabled phones will allow Kenyans to access digitised government services without having to visit any office.

Working with private sector to produce cheap smartphones

He acknowledged the existing market deficit for smartphones in Kenya, adding that the government partnered with private sector players to facilitate the local manufacturing process.

"This is the proactiveness on the part of the government. We have embarked on this ambitious programme of digitalisation that would necessitate Kenyans to consume government services through their phones.

"We know there is a market deficit for smart-enabled phones. We have partnered with the private sector... most of the telecommunication companies... to embark on the local assembling of smartphones," he said.

In May 2023, Safaricom PLC disclosed plans to set up a smartphone manufacturing plant in Kenya to produce cheap phones.

The plan aimed at boosting the government's agenda on cheap smartphones at the cost of KSh 5,000 to boost internet accessibility.

According to Business Daily, Safaricom had petitioned the government against the Finance Act 2023, saying they will hinder the dream of cheap phones.