Research and secondary data show the ever-rising numbers of start-ups, incubators, innovation hubs, and accelerator programs. In Kenya, the sector appears to be booming, with more and more start-ups sprouting across different sectors of the economy. Entrepreneurship in Kenya serves as a source of employment and a major contributor to economic growth. Medium and small medium enterprises contribute nearly 40% of the gross domestic product and constitutes of nearly 98% of all businesses in the country1. However, there鈥檚 still a gap in the quantitative aspects of the start-up ecosystem as there isn鈥檛 much reference point to get reliable data on start-ups.
This research, spearheaded by the FCDO, aims to provide both qualitative and quantitative data regarding the evolution of the start-up ecosystem in Kenya. It presents quantitative data meant to provide a baseline for evaluating the different components of the start-up鈥檚 ecosystem in Kenya. The Kenyan government has signaled its support for start-ups and MSMEs through programs like the credit guarantee schemes and research funds. Academic institutions like universities have also done their part through the setting up of incubation and innovation hubs. County government support has been witnessed in the form of county innovation funds and innovation weeks such as those in Laikipia, Machakos, and Nairobi
Apart from the government and its entities, privately-owned innovation hubs and incubators like Gearbox are independently supporting entrepreneurs, graduates and offers support to the ecosystem. There are an increasing number of start-up conferences and competitions like the Shelter Tech Innovation Week, Disrupt Africa Live Pitch, and the Glovo Startup Competitions.
In spite of this, Kenya still continues to possess a crippling business environment caused by inflexible regulatory policies. Investors point out a series of factors that have hindered smooth business operations, from tax policies to inadequate policy support from the government and even high valuation and high cost of talent acquisition.
A look at other countries above Kenya, such as Nigeria in South Africa, reveals that favorable government policies and ICT infrastructure go a long way in ensuring growth of the economy. Although Kenya remains top within the East African region and still third in Africa, there are many challenges, especially in the macroeconomic and regulatory environments, that remain unsolved. The dissonance in objectives; increasing entrepreneurship while enforcing tax regulations on new businesses, makes Kenya an intriguing economy for further investigation…听Click here to read more
>>>>>>>>>>>>>>>>FCDO Understanding the Kenyan Startup Ecosystem-report
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