Mentorship Crucial for the Future of Kenya’s Startups, Stakeholders Say

Key players in Kenya's startup ecosystem are urging seasoned entrepreneurs to share their knowledge and experience with emerging founders, in a bid to foster the long-term growth and sustainability of local startups.

“Entrepreneurial success extends beyond profit and valuation — true impact lies in paying it forward. At Endeavor, we call this the Multiplier Effect,” said Maryanne Ochola, the Managing Director, Endeavor Kenya.

Ms Ochola was speaking while announcing plans for an initiative that seeks to research high-growth entrepreneurship in Kenya. The research will assess companies in the entrepreneurial ecosystem using network mapping analysis, a methodology that traces the flow of people, capital, and information between entrepreneurs.

A 2020 survey found that 24% of startups in Kenya fail within the first year of operation. Key reasons for this high failure rate include inadequate mentorship, poor financial management, and misalignment with market needs. Despite substantial funding, many Kenyan startups struggle to progress beyond the seed stage due to high operational costs and difficulty in securing follow-up funding.

Ken Njoroge, co-founder of Cellulant, emphasized the need for successful founders to invest in the next generation.

“For an emerging entrepreneurial ecosystem to grow, creating a successful business is not enough; it’s also important that we set the groundwork for future entrepreneurs to succeed, thus creating a flywheel effect cycle of sustainable growth and influence,” said Njoroge.