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

Domestic capital pools have remained inactive as foreign investors fund local startups to the tune of hundreds of billions of shillings a year, minimizing local influence on the growth of emerging companies in Kenya. Wandia Gichuru, co-founder of Vivo Fashion Group, noted a lack of local funders and highlighted the high expectations tied to foreign capital, which can sometimes lead to issues. Among the 20 most active general partners in East Africa, only five organizations are headquartered in Kenya.