Power of smartphone: From status symbol to modern employment tool

There was a time when a smartphone was a status symbol. It dictated who you are and what you are worth.

Owning any brand of iPhone, then, meant you belonged to the upper echelon of society.

An expensive smartphone was like car keys – effective for giving directions, demanding better service in offices where you are not known, or bargaining for a better deal once the client sees the emblem. It was such an effective tool that if Abraham, the father of nations, was alive today, he would have used it to let his nephew Lot know the boundary he should not cross.

Over time, smartphones have ceased being a status symbol. They have become utility assets - an empowerment tool.

It does not matter how expensive it is, but how much money it brings.

And the State has adopted this narrative, with plans to make these devices more affordable, at Sh5,000 per unit amid a push for online jobs under the President William Ruto administration.

The President is on record enticing more youth, saying ‘unafinya kompyuta inatoa madollar’ (just press your computer and it gives you US dollars).

Dr David Kabata, an economics and entrepreneurship lecturer, says the smartphone revolution has taken nearly three decades.

From the internet revolution in 1998, to when smartphones were first introduced in 2007, to the kind of devices we know of today. And with every revolution, how things are done changes.

“The reason why they (the government) are promoting smartphones is because of the business aspect. It is easy to run your business using your smartphone,” says the tech enthusiast.

He notes that smartphones have disrupted some careers as traditionally known. “Most of these young people are working from home because they have smartphones,” he says.

“That is why the government pushes for them, because even if you want to create job opportunities in the era of Artificial Intelligence (AI), how do you do it without a smartphone?”

The market also seems to know how critical these devices are today. Unlike before, when smartphones could only be accessed in major telco-associated stores, today, in almost every corner of the street, your ears will be deafened by a retailer shouting a pre-recorded message on how you can acquire the latest device through a Buy Now Pay Later plan with just Sh5,000 or even less.

This easy access has also paved the way for device insurance, as Liza Maru, Head of Innovation at Britam Connect, a microinsurance subsidiary of Britam Holdings, explains.

She says this surge mirrors how critical smartphones are in an individual’s socio-economic status.

“The primary motivation for smartphone insurance stems from the significant financial investment these devices represent. With smartphones costing between Sh10,000 and Sh50,000 and some premium devices exceeding Sh100,000, the financial risk of loss, theft, or damage creates substantial demand for protection,” she says.

She notes that this uptake, which she averages at 4,000 devices monthly from the firm’s data, also mirrors the critical role smartphones play in Kenya’s economy. “The mobile ecosystem contributed Sh1.2 trillion to Kenya’s gross domestic product (GDP) in 2023, representing 8.6 per cent of total GDP. This substantial economic impact demonstrates why device protection has become increasingly important,” she says.

Procedural purposes

It has become almost so easy to own a smartphone – no matter the brand – that if you lose one through theft, you just walk into the shops and buy another.

You just report to the police for procedural purposes, then upgrade. Tabitha Wanjiru did so in May this year, when she lost hers in a matatu to Thika. 

“I had no hard cash with me. And I did not know my sister’s phone number,” she recalls. “I had to call my mother, whose number I have memorised, and ask her to call my sister, so that she can come for me.” This was in May 2025.

And while Ms Wanjiru has recovered by getting a new smartphone, an upgrade from what she had, she recalls how inconveniencing it was to operate with her reserve device – a feature phone – especially considering her work revolves around social media.

“I manage social media pages for people. You can imagine being required to post consistently and monitor engagement, yet you have a feature phone,” she says. According to the latest data from the Communication Authority, smartphone ownership stands at 42.3 million, while feature phone ownership is at 32.6 million. 

With products in the market such as buy now, pay later, acquiring a new device is not as difficult as it was in the early 2000s when feature phones were getting into the country.

Asset financing company M-Kopa, Watu are among the businesses that have benefited from this change in the user manual on what a smartphone means to individuals. Watu launched Watu Simu in 2021, and by November 2024, it had financed one million devices.

Head of Growth at Watu Simu, Kevin Michuki, says this shift isn’t just about how people buy phones but how they access opportunities.

“Behind every device is a story of someone gaining the tools they need to work, connect, or build something of their own. That’s the impact we’re proud of,” he says.

He points to a profound shift in the social and economic dynamics of how smartphones are perceived. “Smartphones have become essential, not optional, for accessing financial services, mobile work platforms, healthcare, and education,” he says. “And yet, despite Kenya’s high mobile coverage, only around 54 per cent of individuals own a phone, with rural areas trailing even further behind. That gap isn’t about demand — it’s about affordability.”

Mr Michuki says by offering flexible financing, the firm is aiding in removing one of the last major barriers to digital inclusion, as most of Watu Simu clients are the underserved and unbanked individuals who cannot access credit through the mainstream financial institutions.

He says the pay-as-you-go model (lipa mdogomdogo) has even made individuals buy smartphones they never thought they could afford.  While Watu Simu notes that entry-level smartphones are best sellers, customers are now going for devices such as the Samsung A56.

“We’ve seen boda riders track earnings through apps, small business owners accept digital payments, and youth earn income by creating content online,” he says. “What’s clear is that these are not passive devices — they’re economic tools, and our customers are using them every day to build livelihoods and improve their quality of life.”

Pay later plan

Rodgers Omondi, a dealer from Gadget Zetu that sells smartphones through the buy now, pay later plan, says this model attracts more customers.

“Lipa mdogomdogo has a higher percentage of people who are buying smartphones. Smartphones are becoming more expensive and few people can afford them in full,” he says, referencing brands such as Samsung A73 that go for Sh70,000. He says most customers to the lipa mdogomdogo are youth. When segmented further, these buyers are online taxi drivers, small online business owners and motorbike riders.

“They want a phone that has more storage and battery life,” says Mr Omondi. “In a week when we have like 1,000 sales, you will get five are cash buyers, and these are high-end smartphones, and the rest are lipa mdogomdogo.”

He says there are smartphones for as low as Sh75 a day payment or as high as Sh3,000 per week.

Sheila Kandie is one such buyer who says she opted for a Sh32,000 smartphone to up her business, which she markets online. She sells beauty products such as perfume and also bakes on the side from home. All she was after was a smartphone with more pixels.  She paid Sh4,500 as a deposit.

“It helps me mainly with advertising because I get most of my clients online. It has good picture quality too,” she says.

She argues that when she does the math, the deal is good.

However, such a model can see phones cost three or four times the initial price.