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Walking the startups journey in Kenya: Documentation of successes and pitfalls between 2010-2020

Author

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  • Stephen Muathe

    (Kenyatta University (KU), Main Campus, Kenya Drive, Nairobi, Kenya)

  • Paul Sang

    (Kenyatta University (KU), Main Campus, Kenya Drive, Nairobi, Kenya)

  • Lucy Kavinda

    (Kenyatta University (KU), Main Campus, Kenya Drive, Nairobi, Kenya)

  • Sammy Letema

    (Kenyatta University (KU), Main Campus, Kenya Drive, Nairobi, Kenya)

  • Samuel Maina

    (Kenyatta University (KU), Main Campus, Kenya Drive, Nairobi, Kenya)

  • Kenneth Chelule

    (Kenya Industrial Research and Development Institute (KIRDI), South C Nairobi KE, Kenya)

Abstract

Kenya’s Startup ecosystem has experienced tremendous growth over the last ten years. Further, Kenya’s startups have also been among the top-funded in the continent during the same period – attracting financing of between USD 300 million – over USD 3 billion. However, there is currently a lack of granular data guiding policies on the startup ecosystem in Kenya. Hence this Paper traces startup successes and pitfalls of the Ten years (2010-2020) Period in Kenya. The study utilized cross-sectional and longitudinal research designs. The target population was start-ups registered in the 47 Counties in Kenya. A total of 104 startups participated in the study. A mix of sampling techniques was used, namely cluster-stage, systematic, purposive, and snow-balling sampling techniques, to select the respondents for the study. Data were analyzed using Content analysis descriptive statistics were used for data analysis. The findings indicated that startup innovation hubs emerged in Nairobi in 2010 but offer time, which spurred the mushrooming of startups, seats, and co-working spaces with decentralization to significant towns in the country. The Kenyan startup ecosystem has experienced tremendous growth for the last two decades, growing from 10% in the 2000-2010 to 80% in 2010-2020. However, access to financing remains the biggest challenge for startups because of the risk associated with it, especially for early-stage startups. To strengthen the growth of the startup ecosystem, the government, through the statement of Kenya National Innovation Agency, should ensure the development of policies tailored towards startups. The national government should provide matching funds and establish an Inter-county collaboration framework to ensure skills transfer within and among the counties. Key Words:Entrepreneurship, FCDO, Startups Ecosystem, MSMEs, Kenya

Suggested Citation

  • Stephen Muathe & Paul Sang & Lucy Kavinda & Sammy Letema & Samuel Maina & Kenneth Chelule, 2022. "Walking the startups journey in Kenya: Documentation of successes and pitfalls between 2010-2020," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(8), pages 387-400, November.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:8:p:387-400
    DOI: 10.20525/ijrbs.v11i8.2159
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    References listed on IDEAS

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    1. Heidi M. Neck & G. Dale Meyer & Boyd Cohen & Andrew C. Corbett, 2004. "An Entrepreneurial System View of New Venture Creation," Journal of Small Business Management, Taylor & Francis Journals, vol. 42(2), pages 190-208, April.
    2. Beatrice Karitu & Wanja Wangondu & Stephen Muathe, 2022. "A theoretical route towards conceptualization of start-ups in emerging markets: A Kenyan perspective," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(4), pages 448-457, June.
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    Cited by:

    1. Wanja Wangondu & Stephen M.A. Muathe, 2023. "Seed Capital and Performance: Reflections and Way Forward for Micro, Small and Medium Enterprises in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 275-283, May.

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