Eve Munene: Kenya needs strong digital infrastructure countrywide to realise full potential of AI

Kenya's mobile industry is a vibrant and rapidly evolving sector which has been driven by strong smartphone adoption over recent years, mobile money usage and increasing data demand.

The industry, however, faces risks related to cyberattacks, regulatory uncertainties, falling revenue per user (ARPU) and potential privacy issues. 

Cyberattacks targeting mobile applications have increased significantly, impacting user security.  While the industry is lucrative, excessive price-based competition is also leading to declining ARPU, hindering investment in new technology and infrastructure. 

Regulatory changes and overlaps are also seen to pose a challenge to innovation, while data privacy concerns linked to new tax compliance measures raise potential surveillance risks. 

The Star Spoke to Samsung Electronics East Africa Head of Product & Marketing Eve Munene, on industry trends and the future of the country’s mobile industry amid high level of counterfeits and growth in Artificial Intelligence in the country.

How would you describe the current state of Kenya’s mobile industry—and what major shifts have you seen over the past few years?

Kenya's mobile industry has undergone significant transformation, evolving into a dynamic ecosystem that supports various facets of daily life. As of late 2024, smartphone penetration reached 72.6 per cent, with 37.4 million devices connected to mobile networks. 

This growth is fueled by increased affordability, enhanced internet connectivity, and digital literacy initiatives. The proliferation of mobile money services and the expansion of mobile broadband networks, now covering 97 per cent of the population, have further accelerated this trend.

What are some of the biggest opportunities and threats shaping the mobile device landscape in Kenya right now?

Opportunities abound in areas such as mobile financial services, digital education platforms, and the integration of AI technologies. The mobile industry is well-positioned to drive innovation and economic growth. However, challenges persist, notably the proliferation of counterfeit devices. 

According to the Communications Authority, between 30 per cent to 40 per cent of mobile phones in the country are counterfeit. CA says that there were about 64.67 million mobile devices being used in Kenya by September 2023. 

These substandard devices undermine consumer trust, pose safety risks and result in significant tax revenue losses. Addressing these issues requires concerted efforts from regulators, manufacturers and other stakeholders.

With the launch of Kenya’s National AI Strategy, what role do you think the mobile industry should play in supporting AI adoption across sectors?

The mobile industry is pivotal in operationalising Kenya’s National AI Strategy (2025–2030), which emphasises developing robust AI digital infrastructure and fostering AI research and innovation.

Mobile devices serve as foundational AI infrastructure, facilitating access, education, and innovation. By integrating AI capabilities into smartphones, we can democratize access to AI technologies, enabling various sectors, including healthcare, agriculture, and education, to leverage these tools for improved outcomes.

From Samsung’s point of view, how can mobile technology help bring AI into everyday use for ordinary Kenyans?

As a company, we are committed to embedding AI capabilities into our devices to enhance user experiences. For instance, our latest Galaxy series features advanced AI functionalities that assist users in daily tasks.

These capabilities make the device feel like a personal assistant. By making AI accessible through smartphones, we aim to empower ordinary Kenyans to benefit from these technologies in their everyday lives.

What policy or infrastructure gaps still exist that might limit the full potential of AI in Kenya, especially through mobile platforms?

Kenya’s National AI Strategy is a strong step forward, and we fully support the government’s leadership in setting a clear direction. But to realise its full potential, we need stronger digital infrastructure especially in rural areas, and clearer frameworks around data use, ethics and governance.

Mobile devices will be central to how most people experience AI, so we need the ecosystem around them to be equally ready. This is where continued collaboration between government, industry and developers becomes critical.

There has been a rise in demand for smart, connected devices in Kenya. How is the mobile industry responding to this trend?

The industry is responding by expanding the availability of smart devices and enhancing network infrastructure. Kenya's mobile penetration rate has reached 139.8 per cent as of late 2024, indicating widespread adoption.

Manufacturers are also introducing affordable smart devices to cater to the growing demand. Additionally, the expansion of 4G and 5G networks is facilitating the use of connected devices, enabling consumers to access a wide range of digital services.

Counterfeit and substandard mobile devices remain a challenge in the Kenyan market. What is the broader industry impact of this, and how can it be addressed collectively?

Counterfeit devices undermine consumer trust, pose safety risks, and result in significant tax revenue losses. The broader industry impact includes reduced investment in innovation and compromised network performance.

Addressing this issue requires collective efforts between regulators and manufacturers. The Kenyan government has initiated plans to address the problem of counterfeit phones and industry players must support these initiatives through awareness campaigns and stringent quality controls.

How can regulators and manufacturers work together to protect consumers and improve trust in the mobile market?

Collaboration is key. Regulators can implement and enforce standards while manufacturers ensure compliance and educate consumers about the risks of counterfeit products.

Joint efforts can lead to a more secure and trustworthy mobile market. Initiatives such as the registration of IMEI numbers for all mobile devices imported or assembled locally, effective from November 1, 2024, are steps in the right direction.

Affordability remains a barrier for many consumers. How is the industry adapting to ensure premium technology is accessible to more Kenyans?

Industry players including ourselves are addressing affordability through device financing options and Buy Now Pay Later (BNPL) schemes.

These initiatives enable consumers to access premium technology without the burden of upfront costs, thereby promoting inclusivity.

Additionally, partnerships with fintech companies and mobile operators are facilitating access to affordable devices for a broader segment of the population.

What innovations or collaborations in device financing, trade-ins or local assembly are shaping the affordability conversation in Kenya?

Innovations such as M-Kopa's pay-as-you-go model and the establishment of Kenya's first smartphone assembly factory in partnership with HMD Global are significant.

These efforts reduce costs and increase accessibility, contributing to the broader goal of digital inclusion.

As Kenya grows into a digital-first economy, what will define the next phase of the mobile industry?

The next phase will be characterised by the integration of AI and IoT technologies, expansion of 5G networks, and the development of digital skills.

These advancements will drive innovation and economic growth, positioning Kenya as a leader in the digital economy.

The mobile industry will play a central role in this transformation, serving as the primary access point for digital services and platforms.

What role do you think private sector players like Samsung should play in building digital literacy, skills and a future-ready workforce in Kenya?

Private sector players have a responsibility to invest in digital literacy programmes and skill development initiatives.

Samsung is committed to supporting educational programmes and partnerships that equip individuals with the necessary skills to thrive in the digital age.

By fostering a digitally literate workforce as an industry, we can ensure that the benefits of technological advancements are widely shared and contribute to the country's socio-economic development.