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How Mobile Penetration Contributed to the Country’s Economy Growth

Peter Musila 2 years ago

The high penetration of mobile phones and mobile-based transactions have led to a remarkable growth to the country’s economy.

According to the latest statistics, more than 9o percent of Kenyans do have access to mobile phones and 84 percent being able to access internet services.

Recently, the prices of smartphones and mobile data charges have increasingly been going down and hence more people being at a point of purchasing the gadgets.

Jumia in their recent report, they indicated that the price of the average smartphone reduced by 116 percent to Ksh 8600 in 2018 from Ksh 18600 in 2014.

On the other hand, prices of data packages have been on the downward trend from 3.7 percent of monthly per capita income to 1.3 percent of monthly per capita income for 500MB data.

Smartphone business has been booming with Jumia recording more than five times smartphone sales increase between the year 2014 and 2018, with Nairobi and Mombasa recording the highest sales volumes in the same period.

The report further indicates that 73 percent of the customers who made transactions with the company used their mobile phones while 27 percent used their laptops and desktop machines.

Also, 70 percent of the purchases were paid via mobile-money transfer with the remaining 30 percent being done through cash and card transfers.

According to Communication Authority, Ksh2. Trillion was transacted via mobile transfer between July and September 2018, which equates to 24 percent of the country’s GDP.

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Source: https://kenyanwallstreet.com/high-mobile-penetration-contributes-to-economic-growth%EF%BB%BF/

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