Business operators specializing in mobile phones in Nyeri are facing significant challenges due to a severe shortage of products, resulting in a decline in sales. The scarcity has led to some dealers reducing their staff to cut costs amidst the dwindling sales.
Leading mobile phone outlets in Nyeri town have been particularly affected, with many being compelled to sell second-generation mobile network (2G) sets due to the shortage of current models.
Numerous traders have voiced concerns over receiving handsets with faulty batteries or at exorbitant prices. As a result, sellers have been forced to increase prices, a move that has been met with resistance from buyers.
Caroline Njeri, a mobile phone dealer, shared, “Mobile phone sales are currently struggling. In the past, I could make up to Sh40,000 in sales by midday, but these days selling even a single unit is nearly impossible due to increased costs. Some shops have reduced their workforce to manage overhead costs until the situation improves.”
Affected brands include Real Me, Tecno Spark, Samsung, and Itel. The shortage has led to elevated prices, with sellers adding between Sh1,000 and Sh1,500 per set.
Business owners are urging the government to intervene promptly to prevent potential business collapses. The delay in supply, accompanied by higher prices, has strained operations.
Muthoni Mwangi highlighted the issue of delayed orders and increased prices, calling on the government to reevaluate taxation rules on imported mobile sets.
The shortage has also led to calls for reduced taxes on imported electronics, with dealers citing excessive taxation as a factor behind the current crisis. The change in the taxation system for consolidated cargo has been attributed to the scarcity, as importers now pay taxes based on transaction value.
Kenya has witnessed a shortage of electronic goods, particularly smartphones, due to these changes in taxation. The scarcity has prompted concerns about digital inclusion, which the government has tried to address by producing locally assembled low-cost smartphones.
Despite these efforts, the shortage and price hikes persist, impacting both businesses and consumers in the mobile phone market.
