Kenya Innovation Outlook 2024 Urges Action on Startup Bill, Local Capital, and Data Gaps

81% of startup funding in Kenya originates from international sources, a finding that raises concerns about long-term sustainability and the urgent need to mobilize more local investment. This is one of the key insights from the Kenya Innovation Outlook 2024, officially launched last week at the Kenya Startup Festival.

The report provides a comprehensive overview of Kenya’s innovation ecosystem, its progress, structural gaps, and strategic opportunities. An initiative of the Kenya National Innovation Agency (KeNIA), the Outlook was developed through a collaborative effort by StartupBlink and GrowthAfrica, with support from the UK’s Foreign, Commonwealth and Development Office (FCDO). It builds on the foundation of Kenya’s 10-Year National Innovation Masterplan and represents a significant milestone in its implementation.

Framed around five critical pillars – human capital, access to finance, access to markets, infrastructure, and policy, the report presents a grounded, data-led view of Kenya’s innovation journey. It underscores the country’s rising stature as the “Silicon Savannah” while also surfacing structural challenges that must be addressed to unlock inclusive and sustainable growth.

“The Kenya Innovation Outlook is a mirror and a map. It reflects our ecosystem’s growing maturity while guiding our next steps toward an innovative economy that is both inclusive and globally competitive. From digital transformation to local capital mobilisation, the data speaks clearly: KeNIA is committed in driving this agenda as we move from intent to impact,” said Dr. Tonny Omwansa, CEO, KeNIA.

Other Key findings from the report include:

• Over 75% of business development service (BDS) providers are concentrated in Nairobi, exposing critical regional disparities in startup support.
• Women-led startups receive only 12% of total funding, highlighting persistent gender financing gaps.

• The Startup Bill remains pending, delaying the establishment of a comprehensive legal and policy framework for startups nationwide.

The report also introduces updated innovation indicators designed to better track Kenya’s progress, giving stakeholders actionable insights that combine local realities with global benchmarks.

“The outlook validates that ecosystems thrive when they’re collaborative, decentralised, and inclusive. Innovation is in the aspirations of every entrepreneur across Kenya. It is the ecosystem’s role in collaboration with KeNIA to translate the insights into structural shifts that elevate startups everywhere,” said Ian Lorenzen, Executive Director, GrowthAfrica.

The Outlook also flags a lack of consistent data, especially outside Nairobi, as a key challenge. One of its main recommendations is the creation of a centralised innovation data hub under KeNIA, supported by open data policies to enable evidence-based decision-making across the ecosystem.

“Kenya has the talent and momentum to become a global innovation leader — but it must bridge the gaps in data, decentralisation, and capital access. By visualising these challenges in a globally comparative format, the report offers both local and international stakeholders a powerful tool to act with clarity and precision,” said Eli David, CEO, StartupBlink.

As Kenya continues implementing its National Innovation Masterplan, the Kenya Innovation Outlook 2024 serves as both a diagnostic and a roadmap, informing decisions across government, academia, the private sector, and development partners committed to driving the country’s innovation forward.

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