Persistent challenges in funding, regional equity, gender inclusion, and policy threaten to stall inclusive and sustainable growth of innovation, a new report says. Launched at the Kenya Startup Festival, the new report has laid bare the critical gaps undermining Kenya’s innovation ecosystem, even as the country continues to build its reputation as Africa’s “Silicon Savannah.”

The Kenya Innovation Outlook 2024, spearheaded by the Kenya National Innovation Agency (KeNIA), reveals that among the most pressing issues highlighted: 81 per cent of startup funding originates from international sources, raising alarms about long-term sustainability and insufficient local investment mobilisation.

 Business development

Additionally, more than three-quarters of business development services providers are based in Nairobi, exposing major disparities in access for entrepreneurs in other regions.

Even more concerning, women-led startups secure just 12 per cent of total funding, underscoring deep-rooted gender gaps in financial access. Meanwhile, the Startup Bill remains in legislative limbo, delaying the creation of a robust legal and policy framework to support innovation nationwide.

“The Kenya Innovation Outlook is a mirror and a map,” said Tonny Omwansa, CEO of KeNIA.

“It reflects our ecosystem’s growing maturity while guiding our next steps toward an innovative economy that is both inclusive and globally competitive. From digital transformation to local capital mobilisation, the data speaks clearly: KeNIA is committed to driving this agenda as we move from intent to impact.”

The report — a collaborative effort between KeNIA, GrowthAfrica, and StartupBlink, and supported by the UK’s Foreign, Commonwealth and Development Office (FCDO) — marks a significant step in implementing Kenya’s 10-Year National Innovation Masterplan. It is framed around five key pillars: human capital, access to finance, access to markets, infrastructure, and policy.

The report also introduces updated performance indicators designed to improve how innovation progress is tracked, both locally and in comparison with global benchmarks.

These metrics aim to provide stakeholders — including government, academia, private sector players, and development partners — with the insights needed for evidence-based decision-making.

Beyond highlighting gaps, the report calls for the establishment of a centralised national innovation data hub, alongside open data policies to enhance transparency and coordination.

This is particularly critical for tracking progress in counties outside Nairobi, which remain vastly under-represented in available data.

“Kenya has the talent and momentum to become a global innovation leader — but it must bridge the gaps in data, decentralisation, and capital access,” said Eli David, CEO of StartupBlink.

“This report offers a globally comparative lens that helps stakeholders act with clarity and precision.”