In a market with an ever-increasing appetite for mobile phones, the low-priced Mi phones have found a home in Kenya, with sales of 10,000 units in the past quarter.

The growth in demand was a result of a new distribution network in the major towns of Nairobi, Mombasa, Nyeri, Eldoret and Kisumu, said Mi global sales director Alpesh Patel.

The phones target middle- to low-income consumers and are popular with urban youth in Kenya, Uganda, Ghana, Mauritius and Madagascar because of the low cost, Patel said.

Following success in the urban youth market, Mi phones will be rolled out in rural areas. The company will sell the Mi 100, Mi 200 and Mi 200f models, while additional models will hit the market before the end of 2008. The handsets retail for between US$25 and $60.

The rollout, Patel said, is set to coincide with the entry of two new mobile-phone providers in the country, which is expected to further increase demand.

The IDG News Service is a Network World affiliate.