Telecomunication Giant MTN Uganda has petitioned Parliament to remove import duties on entry-level smartphones, arguing that high taxes incentivize the smuggling of mobile devices into the country.
Denis Kakonge, MTN Uganda General Manager for Corporate Services, told the Finance Committee that low-income earners are currently priced out of the smartphone market. He noted that the Uganda Revenue Authority has frequently identified that a significant portion of phones in the local market enter the country without paying required duties.
As of late 2025/early 2026, smartphone adoption in Uganda is growing but still lags behind feature phones, with an estimated 18.2million smartphones in circulation out of over 41 million total mobile subscriptions. While specific, updated annual “number of units entering” the market is not explicitly broken down, the market is defined by a steady rise in smartphone subscriptions from roughly 10 million in early 2022 to over 18 million by early 2025
Recent enforcement operations have uncovered thousands of smuggled phones in single raids, which Kakonge said demonstrates the scale of the issue. He argued that while taxing growing sectors appears logical, current tax policies are suppressing the growth necessary to generate larger long-term revenues.
MTN officials questioned how the digital transformation goals outlined in the National Development Plan could be achieved when the majority of Ugandans, who rely on mobile money for transactions, cannot afford the hardware required to access digital services.
During the session, lawmakers including Tororo County North MP Geofrey Ekanya questioned the quality of network coverage in various parts of the country.
In response, Kakonge told the committee chaired by Amos Kankunda that the company continues to invest in telecommunications towers to expand connectivity, though certain geographical locations remain a significant infrastructure challenge.
Market Growth & Trends:
While feature phones still dominate due to affordability and battery life, there is a gradual shift towards smartphones driven by mobile network operators.
According to a May 2021 report, importation of smartphones into Uganda has previously exceeded 380 million units globally, reflecting high demand for data-enabled devices.
uganda has embraced local assembling of smartphones with Mione launching locally assembled smartphones in 2024 to reduce costs however imported top brands Samsung 34.4%,Tecno 21.45%,Infinix 8.88% and Apple 8.17% were top vendors as of march 2026.
