Cash burn, weak business models drive Kenyan startup failures

Despite a record funding inflow of $984 million in 2025, startups in Kenya are facing a wave of failures due to high cash burn rates and operational inefficiencies. Over seven venture-backed businesses have closed or scaled down operations in the past 16 months, citing rising operating costs and delayed investor commitments. PwC recommends institutionalizing a 'cash culture' to improve financial resource management.