First Local Phone Assembly Plant in Kenya Opens in Athi River. Kenyan Phones Now Available from Ksh.7,499 as Local Assembly Plant Launches!
Kenyan telecommunications companies have launched the nation’s inaugural local phone assembly plant in collaboration with global device manufacturers. Situated in Athi River, the East Africa Device Assembly Kenya Limited (EADAK) fulfills the government’s pledge to establish a domestic smartphone assembly capable of producing up to 3 million units annually.
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During the launch event, EADAK’s chairman, Joshua Chepkwony, announced that their devices will be available for purchase starting at Ksh.7,499. These phones will be accessible nationwide at Faiba shops, dealer stores, Safaricom outlets, and the Masoko online platform. The initial offerings will include the 4G-enabled Neon models: a 5-inch “Smarta” and a 6.5-inch “Ultra”. EADAK also has plans to introduce a locally assembled tablet in the near future. The factory is expected to create between 300 and 500 direct jobs.
Peter Ndegwa, the CEO of Safaricom, expressed the significance of this partnership in expanding 4G access, providing affordable, high-quality smartphones to Kenyans, generating employment, and fostering economic growth. He stated, “The launch of EADAK reaffirms our belief in the power of connectivity to transform lives and drive economic progress.”
In May, Kenyan telcos projected an annual output ranging from 1.2 to 1.8 million devices, with the least expensive device anticipated to retail at Ksh.11,500. This exceeded the target set by President William Ruto the previous year, when he expressed the government’s aim to have locally manufactured mobile phones retailing for less than Ksh.5,000 (about 50 USD at the time).
Safaricom’s Head of Ventures, Karanja Gichiri, who is also the EADAK Project Lead, attributed the higher prices to new taxes on mobile phones introduced in the Finance Act, 2023. He explained that despite efforts to find an affordable chip supplier, these levies resulted in a 40% price increase. To achieve the vision of a 50-dollar phone, Gichiri emphasized the need to address import duty, excise duty, and output VAT, estimating a final cost between 6,500 to 7,000 shillings. Gichiri conveyed this information to the parliamentary Finance and Planning committee on May 24.
