Researchers have called on Kenyan lawmakers to revise proposed amendments to the Startup Bill before they become law, warning that a ten-year age limit on what qualifies as a startup would systematically exclude the companies doing the most to power Kenya’s economy.
The call comes from a landmark study released this week by Endeavor Kenya.
The report, titled Mapping the Kenyan Entrepreneurship Network, urges policymakers to stop classifying high-growth companies alongside small and medium-sized enterprises (SMEs) and to overhaul support programs so they target the capital and talent needs that scaling founders consistently identify as their biggest barriers.
It further calls for deliberate mechanisms to channel the mentorship and angel investment capacity of experienced founders toward the next generation of entrepreneurs.
“Kenya already enjoys the recognition of being the ‘Silicon Savannah’, where technology, talent and a dynamic entrepreneurial culture live”, said Endeavor Kenya Managing Director, Maryanne Ocholla, adding that “It’s time we push the narrative beyond startup success to include scale-up success by doubling down on high-growth firms.”
The report warns against policies that focus on company age, arguing that they exclude high-growth companies which often take more than a decade to scale.
The proposed Startup Bill, which is currently before parliament, defines a ‘Startup’ as a company that has been in existence for no more than ten years. Under this definition, the report says, companies would age out of startup status at the very moment they begin to have their greatest economic impact, thus disqualifying them from the tax incentives, regulatory protections and government support programs that the bill is designed to provide.
The study also calls for a fundamental redesign of how government-backed support programs are structured.
At present, networking opportunities are the most widely available form of assistance, yet founders consistently rank access to capital and qualified talent as their most pressing challenges. Programs that address those specific needs are, by contrast, rare.
The researchers recommend that decision makers audit existing support programs against the actual needs of scaling companies and redirect resources accordingly.
The report also points out that the number of technology companies in Kenya has nearly tripled between 2014 and 2024, reflecting a decade of rapid ecosystem growth.
But the study warns that raw growth in company numbers does not automatically translate into quality employment or economic transformation that outcome depends overwhelmingly on how many of those companies manage to scale.
Policies that inadvertently obstruct scaling, the researchers argue, therefore carry a disproportionate economic cost.
Additionally, over 80 pc of high-growth founders interviewed reported selling to customers outside Kenya, compared with just 50 pc of founders leading smaller companies.
This gap underscores the extent to which scale and international reach are intertwined: it is the companies that have grown large enough to sustain cross-border operations that are converting Kenya’s ‘Silicon Savannah’ reputation into actual export revenue.
The researchers identified 46 serial founders who have collectively launched 80 companies, illustrating how experience and capital circulate within the startup ecosystem.
This dynamic, the report argues, means that investing in high-growth companies generates compounding returns as successful founders become potential mentors, investors, and role models for the next wave of entrepreneurs.
