The Moi University’s Experiment

The Moi University’s Experiment

Moi University will be making computers and other digital devices. According to TC Daily, the ” devices include desktops, laptops and workstations using the MU Fortune brand name. Launched in partnership with Portuguese firm, JP.TK, the devices were assembled by the university’s MU technologies Digital Assembly Plant. According to the school, the plant has a capacity to produce 4,000 devices per day. The newly launched devices will retail for between $290.11 and $967.02.”

Moi University unveiled six-locally assembled Information and Communication Technology (ICT) devices that will target students, enterprises, government institutions and SMEs on Tuesday 22.

The devices, under the university’s brand name, were assembled at the university’s digital assembly plant at Rivatex in Eldoret at a cost of Sh500million.

The devices include MU Fortune Slim Book and MU Trigono, Slim desktop, mini Personal Computer (PC), Fortune desktop, Workstation and Workbook all running on the latest intel and Microsoft technologies.

Moi University will have its moment in the market. But the challenge ahead will be what happens in Kenyan borders and ports. Only the Kenyan import policies will help this experiment. With the 4,000 devices per day capacity, the unit economics will not work in favour of the university when some competitors like HP, Dell and Lenovo produce in hundreds of thousands, if not millions of units, daily. That big capacity gives the foreign brand pricing advantage through economies of scale. Yes, for Moi University plant to thrive, Kenya has to adjust some elements of its import policy. If not, this experiment will fail.

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