New Research Urges Kenya to Prioritize High-Growth Companies to Unlock Vision 2030 Potential

A new study has revealed that high-growth companies in Kenya hold immense but largely untapped potential to accelerate job creation and economic expansion, calling for policies that specifically support these fast-scaling businesses.

The research, conducted by Endeavor Insight in partnership with Endeavor Kenya, examines how high-growth firms—particularly tech and tech-enabled businesses that scale to 50 or more employees—are shaping the country’s entrepreneurial ecosystem and contributing to economic development.

According to the study, while these companies represent only a small portion of the entrepreneurial landscape, they play an outsized role in job creation, innovation, and global market expansion. Researchers argue that creating targeted policies and support systems for high-growth firms could significantly strengthen Kenya’s economy and help advance the country’s long-term development blueprint, Kenya Vision 2030.

“Kenya already enjoys the recognition of being the ‘Silicon Savannah’, where technology, talent, and a dynamic entrepreneurial culture thrive,” said Maryanne Gichanga, Managing Director at Endeavor Kenya. “It’s time we push the narrative beyond startup success to include scale-up success by doubling down on high-growth firms. I look forward to having this data inform targeted policies for this category of Kenya’s entrepreneurs.”

The findings are based on more than 100 interviews with founders conducted between April and May 2025, alongside analysis of data from more than 730 companies operating in Kenya’s tech ecosystem.

One of the key insights from the report is that grouping high-growth firms together with small and medium-sized enterprises (SMEs) in policy frameworks is limiting the country’s economic potential. The study notes that scaling companies operate under different conditions and contribute disproportionately to employment and productivity.

High-growth companies currently account for only about 15 percent of Kenya’s tech sector firms, yet they are responsible for nearly 80 percent of jobs created within the ecosystem. The study also found that these companies are more likely to expand into international markets, with about 82 percent of high-growth founders reporting that they serve customers outside Kenya. In comparison, only half of founders running smaller companies reported similar international reach.

The research further highlights the importance of founder-to-founder support in building a stronger entrepreneurial ecosystem. Founders of scaled companies were found to be 1.5 times more likely to have received mentorship or angel investment from another founder. They are also more likely to mentor emerging entrepreneurs and invest in new ventures themselves, creating a cycle of knowledge sharing and capital flow that helps younger startups grow.

However, the study warns that certain policy frameworks may unintentionally exclude many high-growth companies. For example, proposed amendments to the Kenya Startup Bill define startups as businesses that have existed for less than ten years. Yet the report shows that it typically takes Kenyan companies about a decade to reach meaningful scale.

In addition, the research found that many support programs do not address the most pressing challenges faced by scaling businesses. While networking initiatives are widely available, founders say they struggle more with accessing growth capital and finding qualified talent—two critical elements for scaling companies.

The report also presents broader insights into Kenya’s entrepreneurial landscape. Between 2014 and 2024, the number of tech companies in the country nearly tripled, underscoring the rapid growth of the innovation ecosystem. More than one-third of Kenyan startups are founded by teams that include at least one female co-founder, significantly higher than the African average of 17.3 percent.

Kenya’s ecosystem is also seeing the rise of serial entrepreneurship, with 46 experienced founders collectively launching 80 companies in the country.

Encouragingly, the study shows strong optimism among entrepreneurs about the future of the ecosystem. More than 80 percent of founders expressed confidence in the direction of Kenya’s startup environment, while over 85 percent reported having engaged policymakers about the challenges affecting their businesses.

Looking ahead, more than two-thirds of founders said they would be willing to engage with government leaders on policies aimed at strengthening entrepreneurship and supporting companies that have the potential to scale.

Researchers say this collaboration between entrepreneurs and policymakers will be critical in ensuring Kenya fully harnesses the power of high-growth companies as engines of economic growth, innovation, and job creation.

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