Hey, welcome to this week’s newsletter!

Hoping your weekend has started well!

We had a slow week in the startup scene but there were some newsworthy stories you may want to know about.

This week, Kenya’s Senate has passed the controversial 2022 Startup Bill, which, if signed into law by President William Ruto, could reshape the country’s startup ecosystem. The bill mandates that startups allocate at least 15% of their expenses to research and development (R&D) and maintain wholly Kenyan ownership to qualify for legal recognition and government support. 

While the bill introduces incentives such as tax breaks, grants and incubation programs, its local ownership requirement has raised concerns. Critics argue that this clause could exclude startups with foreign co-founders or significant foreign investment. This could slow their growth and limiting Kenya’s appeal as a hub for international venture capital.

The 15% R&D expenditure requirement is the right step as it will encourage startups to secure patents, register software etc. This is a net positive for Kenya. With that said, concerns remain about the financial strain this could place on startups with tight budgets. 

What are your thoughts on this? 

We had 5 startup funding rounds:

This the investors who took part in the highest funding round are BlueOrchard, Hollard, Yellowwoods, the International Finance Corporation (IFC) and DEG. These investors helped Naked, the South African InsurTech startup raise $38 million.

You can keep in touch with me on social media, I would love to hear more from you (I am open to suggestions too)

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