Nairobi — Kenyan corporates have been urged to move beyond brand sponsorships and step into strategic investment as the country's startups face a deepening funding shortfall despite their global reputation for innovation.
A new report by the Corporate Venture Capital (CVC) dubbed State of Play in Kenya has revealed that local corporates remain under-engaged in venture financing even as global corporate venture capital (CVC) funding surged to $130 billion in 2024, nearly double 2017 levels.
In Kenya, activity remains limited to a handful of players such as Safaricom's Spark Fund and Chandaria Capital.
The findings, published in the report, warn that without stronger local participation, Kenyan startups will continue to depend disproportionately on foreign investors.
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This dependency persists even as Africa's early-stage businesses collectively face a $194 billion annual funding gap, equivalent to about 7% of the continent's GDP, according to the African Development Bank.
"Startups in Kenya have immense potential, but many struggle to secure early-stage investment," said Enos Weswa, Country Director, UK-Kenya Tech Hub.
"The UK-Kenya Tech Hub exists to bridge that gap through training, research, and programmes like the Angel Leads Program so more founders find capital, customers, and partners right here at home."
The report notes that Kenyan corporates are uniquely positioned to scale startups thanks to their dominance in telecoms, fintech, FMCG, and infrastructure.
By deploying capital strategically, corporates can unlock new markets, distribution networks, and acquisition opportunities while strengthening Kenya's economy.
"This report isn't theory, it's a playbook," said Stephen Gugu, Co-founder of the African Angel Academy and Director at ViKtoria Ventures.
"Corporate capital is multiplier capital when deployed with strategy and patience."
The report introduces a Corporate Venturing Readiness Assessment, a checklist for boards to evaluate governance, financial commitments, and assets such as data and distribution before investing in startups.
Likewise, it recommends co-investment with angel networks and venture capital firms to align expectations and safeguard startup growth.
Kenya's venture ecosystem has seen capital inflows slow amid tighter global VC activity.
The report contends that corporates that embrace CVC early could capture first-mover advantages in emerging technologies, customer segments, and market access.
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The report was launched in Nairobi during the unveiling of the UK-Kenya Tech Hub and ViKtoria Ventures' inaugural Corporate Venture Capital Report under the Angel Leads Program, which has trained dozens of angel investors in Kenya.
