ICT start-ups face early funding gap

Kenya’s ICT sector is facing a gap in early-stage investments despite an array of successful start-ups that have solved social problems and created thousands of jobs, a new UK-backed report guiding investors on Kenyan investments says.

The report- Angels in the Silicon Savannah – a practical guide to support local and international ‘angel’ investors navigate the Kenyan investment landscape- outlines how early stage investors can identify suitable Kenyan businesses.

Prepared by Kenyan advisory firm Viktoria Ventures on behalf of the UK-Kenya Tech Hub, the report shows the financing gap remains even as Kenya remains a popular destination for private equity, impact investing, and venture capital with over $428.9 million raised by Kenyan tech firms in 2019 alone.

“An important financing gap remains in support to help them navigate from business ideas through to scalable and investable propositions,” the report reads.

Head of British government funded UK-Kenya Tech Hub Sheena Raikundalia said co-investment by local and international early stage investors could turbo-charge Kenyan entrepreneurship.

“From M-Pesa (financial inclusion), M-Kopa (energy), and M-Tiba (health) entrepreneurship can solve development challenges and create jobs,” she said.