Kenya’s startup bill mandates R&D investment, but ownership rule sparks concerns
- Kenya's Senate passed the 2022 Startup Bill.
- The bill mandates startups to allocate 15% of expenses to research and development.
- Startups must maintain wholly Kenyan ownership to qualify for government support.
The 2022 Startup Bill presents a mixed bag for Kenya's startup ecosystem. While the intent to foster innovation through R&D investment is commendable, the rigid ownership requirements could alienate a significant portion of the startup community that relies on foreign investment and expertise. A more flexible approach that accommodates the diverse nature of startups might yield better long-term results for the ecosystem.
