NAIROBI, Kenya, Dec 4 — Kenya’s startup ecosystem is brimming with talent and ambition but remains in its early stages due to regulatory bottlenecks and structural challenges, according to global innovation platform Latitude59.
Latitude59 CEO Liisi Org, whose Estonia-based platform connects startups and investors worldwide, said Kenya has immense potential but must open up to foreign investment, streamline regulations, and strengthen public-private collaboration to accelerate growth.
The organization is hosting its third annual Nairobi event, attracting 3,000 participants and over 100 investors from 22 countries.
“Kenya must open up to foreign capital and create a smoother regulatory environment if it wants to compete globally,” Org said. “Legislative systems here take longer than in Estonia, which is fully digital, but if companies really want to come, they will find the people who can help them. Latitude can bring all those people together.”
Org emphasized that Kenya’s early-stage status should not be viewed as a weakness but as part of a natural growth curve experienced by other innovation hubs such as Silicon Valley, Israel, and Estonia. She highlighted the country’s progress, driven by the hunger, creativity, and resilience of its founders.
Recent data from the African Startup Funding Tracker shows that Kenya’s potential is gaining global recognition. In 2024, Kenyan startups attracted approximately Sh82.5 billion (US$638 million), representing nearly 29 percent of all startup funding across Africa. Much of this investment surge was driven by major deals in climate tech, signaling growing investor interest in green and sustainable innovation.
However, Org cautioned that capital inflows alone are insufficient for Kenya to transition from a funding hotspot into a globally competitive startup ecosystem. She stressed the need for structural reforms, regulatory clarity, and deeper collaboration between government and the private sector.
Kenya National Innovation Agency (KENIA) Startup Director Philip Gondi echoed her view, noting that the government has rolled out incentives such as a 30 percent income tax relief for certified startups and plans additional support early next year to help firms raise and retain funds locally.
“Kenya must continue to open its ecosystem to investors and provide incentives for startups to scale,” Gondi said. “The financial instruments in this country do not yet fully support startups, so we provide grant funding to help them establish operations. So far, we’ve supported 226 startups in three years, and early 2026 will see another call for applications.”
Both Org and Gondi agree that with targeted reforms, stronger collaboration, and continued foreign capital inflows, Kenya can move from an early-stage ecosystem to a global innovation powerhouse.
