In a large, climate-controlled factory floor in Nairobi’s Industrial Area, a remarkable industrial revolution is quietly taking place. Rows of workers in blue coats sit along a moving conveyor belt. Every few seconds, another smartphone inches forward, receiving a new component. By the end of the day, more than 7,500 devices will have rolled off the line, boxed and ready for sale across Kenya and Uganda.
This is the M-Kopa smartphone assembly plant — one of Kenya’s most ambitious experiments in local manufacturing — and it is changing what “made in Africa” can mean.
From Solar Financing to Smartphone Assembly
M-Kopa was founded in 2011, initially focused on pay-as-you-go solar home systems for off-grid households. In January 2023, it pivoted to smartphone assembly — a move triggered by government tax policy. In 2022, Kenya introduced a 10 percent excise duty on imported phones on top of a 25 percent import duty. “This meant device prices were going up by around 37 percent,” Martin King’ori, M-Kopa Kenya’s general manager, told Business Daily.
The Factory Floor
M-Kopa partnered with HMD Global, maker of Nokia-branded phones, to set up the Nairobi facility. Three assembly lines each produce 2,500 devices per day — 7,500 total daily. “Monthly, we can comfortably do 150,000,” Mr. King’ori said. Each phone begins as a skeletal unit. As it moves along the conveyor, more than 55 components are added. At one station, a robotic arm fastens 18 screws in just 11 seconds.
Refurbishment: A Second Life for Old Phones
In a separate section, traded-in phones are assessed, repaired, and reintroduced at lower prices. “Refurbishing capacity currently stands at about 500 units per day,” said Ismael Abisai, head of manufacturing. “These refurbished devices help a lot of people acquire their first smartphone.”
Policy Challenges
While finished locally assembled devices are zero-rated for excise duty, imported components attract 16 percent VAT — money the company must later reclaim, tying up working capital. The company is targeting 10 million locally produced smartphones by 2027.