Kenya, known for its rapid adoption of smartphone technology, has seen a significant increase in smartphone usage over the years. According to the Communications Authority of Kenya (CA), there were 35.2 million smartphones in Kenya as of June, a 14% increase from 30.7 million in June 2023, with a penetration rate of 68%. This means that nearly every adult in the country owns a smartphone, indicating a high level of technology adoption.
With the smartphone market in Kenya reaching saturation point, phone makers are shifting their focus towards software solutions to remain competitive. Huawei, a leading smartphone manufacturer, has introduced new software products such as the Artificially Intelligent Call Centre (AICC) targeting small and medium-sized businesses in Kenya. The company has also started selling cloud storage solutions and AppCube, an online software development platform, in the Kenyan market.
Other phone makers like Nokia, Tecno, Samsung, and local assembler M-Kopa have also ventured into the software business in Kenya. Nokia, known for its feature phones in the early 2000s, has launched Ava Fixed Network Software and Cloud Storage services targeting telecommunication firms and mobile network operators. Tecno, owned by Transsion Holdings, has introduced AI software and companion robots known as Dynamic 1 robots in the Kenyan market.
Samsung has integrated AI solutions into its high-end devices, while M-Kopa’s locally assembled devices now come with health insurance and device protection add-ons. These companies are diversifying their businesses to stay relevant in a market where smartphone sales are declining.
While Kenya has embraced smartphone technology, neighboring countries like Uganda and Tanzania are still lagging behind in smartphone adoption. This presents an opportunity for phone makers to continue selling smartphones in these markets. However, the focus on software solutions in Kenya reflects the changing trend in the industry towards software-driven services in response to market dynamics.
