According to International Data Corporation (IDC), Kenya has recorded a 21.5 per cent growth in the mobile handset market after the re-introduction of VAT on handsets in 2013 by the government which has seen the country’s unofficial market benefit from the move.
The premier global provider of market intelligence, advisory services, telecommunications and technology markets says the gray market has increased volume of shipments to the state accounting for more than two-thirds of the mobile handsets in the market.
smartphone shipment increase according to the report by International Data Corporation has risen up to 104.6 percent in the first quarter of 2014. The analysis will help IT professionals, business executives, and the investment community make fact based decisions on technology purchases and business strategy.
The growth is also attributed to various economic and social factors. The gray market refers to the import and sale of goods by unauthorized dealers in this instance as well, such an activity is unofficial but not illegal.