Why local capital plays second fiddle to foreigners dominate startups’ funding

Domestic capital pools have remained sidelined as foreign investors dominate the funding of local startups in Kenya, amounting to hundreds of billions of shillings annually. Wandia Gichuru, co-founder of Vivo Fashion Group, noted a lack of local funders during her ventures, highlighting the high expectations tied to foreign capital. Between 2021 and 2025, Kenyan startups shared Sh524.5 billion ($4.2 billion) in private capital funding.