Kenya’s President Williams Ruto has shared that the Kenyan Startup Bill will become law in April 2024, marking the end of a two-year process.
Senator Johnson Sakaja presented the bill in December 2021, gaining unanimous support in the Senate. Once approved by the national assembly, it awaits the president’s assent.
The Startup Bill is designed to provide tax incentives, improve credit access, and create a supportive platform for startups, fostering the country’s tech growth.
The Fintech Association of Kenya views this as a significant milestone, expecting it to create a more favourable environment for startups, contributing to Kenya’s economic transformation.
President Ruto’s pitch in Silicon Valley positioned Kenya as Africa’s hub for business process outsourcing and the creative economy. The Startup Bill aligns with Kenya’s commitment to drive economic growth through innovation.
The bill defines a Kenyan startup as a recently registered company or one operating for up to seven years (ten years for biotech startups) from the bill’s enactment. It mandates one-third ownership by Kenyans and a headquarters or branch in the country.
The legislation requires businesses registered with the Business Registration Service to also register with the Kenya National Innovation Agency.
The Agency will facilitate connections with local and international accelerators, support startups in their initial stages, protect intellectual property, and contribute to overall startup growth.
A loan guarantee mechanism is established to streamline financial aid access, potentially enhancing financial assistance availability.
The Agency will oversee startup registration, appoint a Startup Registrar, and maintain a database for venture capitalists and private equity funds seeking investment opportunities.
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