Nokia is reinstating Nairobi as East Africa’s regional headquarters just months after downgrading the operation to a sales, distribution and customer service centre. The company, which has a 60% market share in Kenya in terms of Smartphone distribution, had moved its East African regional head office to Johannesburg in December 2011. Despite the fact that Nokia is a popular brand in SA, East Africa harbours more potential due to its growing mobile phone market. According to the company’s new General Manager (GM), Bruce Howe, the move will ensure that Nokia partners with Kenyan operators, distributors and retailers to boost their profitability.

The Communications Commission of Kenya (CCK) reports that the number of mobile phone subscribers in the country is up 29.2 million users from 25.3 million the previous year. Nokia intends to exploit these numbers and increase its market share within the East African region.

The relocation process has so far led to the sacking of 25.8% of the company’s employees and the transfer of about 6 managers from within the Kenya office. In spite of these challenges, Howe remains confident that reinstating Nairobi as a regional hub will help the company to become a leading distributor in the region. Howe will head operations in Kenya, Tanzania, Uganda, Angola, Mozambique and Zambia.