Kenyan startups are struggling to secure capital due to local institutional investors, such as pension funds and insurance companies, shying away from perceived high-risk ventures and opting for safer investments like government bonds. This contrasts with global practices where large money managers actively invest in high-growth, innovative firms.

• Edward Claessen, Head of the European Investment Bank’s Regional Hub for Eastern Africa, highlighted a severe lack of capital in Africa's promising startup ecosystem.
• The EIB’s Boost Africa initiative leveraged €78 million (Sh13.23 billion) to unlock over €382 million (Sh58 billion) in private foreign investment, demonstrating the impact institutional investors can have.
• Claessen emphasized the need for an enabling government framework and incentives to encourage local investors to allocate even a small portion (e.g., one percent) of their managed funds to venture capital.