Why Most Startups in Kenya Are Failing
Introduction
Kenya has become a hub of entrepreneurial energy, with new startups launching every day. But here’s the uncomfortable truth—most of these startups are destined to fail. Not because of a lack of funding, technology, or talent, but because they are solving imaginary problems instead of real ones.
Recently, I shared a post on LinkedIn about the problem with most startups in Kenya, and it sparked an intense conversation. The comments were honest, insightful, and brutally real. Let’s take a closer look at what’s wrong with most startups in Kenya and what aspiring entrepreneurs can learn.
1. The Problem with Most Kenyan Startups
Imagine asking a random Kenyan which startup they use daily. They won’t mention the latest fintech app, an innovative e-commerce platform, or a fancy ride-hailing service. Instead, they’ll list brands like:
- Safaricom—because it provides reliable connectivity and mobile money services (M-PESA).
- Airtel—offering affordable communication services.
- Equity Bank—solving real financial needs for millions.
- Local businesses like Mbugua Hardware provide essential products without the hype.
These businesses solve real problems—connectivity, banking, daily essentials. But many Kenyan startups are different:
- Building apps to book a toilet in 3 seconds.
- Launching crypto platforms that vanish after a single funding round.
- Five-person teams with titles like Tech Lead, Product Architect, Visionary, Growth Hacker, and Chief Evangelist—yet no one can explain what the company actually does.
These are not businesses. They are dressed-up PowerPoints with no product.
2. Why Most Startups in Kenya Fail
Most Kenyan startups fail because they forget the only person who matters—the customer. Here are some of the biggest mistakes they make:
✅ 1. Building Without Solving a Real Problem
Startups are obsessed with creating something “new” instead of creating something useful. The result? A market full of solutions looking for problems.
✅ 2. Prioritizing Funding Over Value
Many entrepreneurs think that raising money is the ultimate sign of success. They pitch to investors before talking to actual customers. But money can’t save a business without a clear purpose.
✅ 3. Overcomplicating Simple Solutions
Instead of making life easier for customers, startups make it harder. We have apps that need 15 signatures and a letter from your great-grandmother just to withdraw KES 500.
✅ 4. Copying Instead of Innovating
Kenya’s startup scene is full of copy-paste solutions. Everyone is building yet another “Uber for X” or “Netflix for Y.” But if your startup can disappear tomorrow and nobody would notice—it was never needed in the first place.
3. What the Comments Section Revealed
The comments on my LinkedIn post revealed a lot about how professionals feel about the startup ecosystem in Kenya:
Brij 🥷
“You just said what most fear to say or even acknowledge. More power to you! This isn’t a post. It’s a mirror.”
Felister Waithera
“How do we create an environment where solving real problems becomes more attractive than chasing funding hype? What needs to shift—mindsets, mentorship, or the money itself?”
Fredrick Murimi
“This was me back in 2022. I started a business to MAKE MONEY. I thought it would be a game-changer. I failed terribly. I discovered myself in 2023.”
Ethan Brisby
“Perhaps it would bring more problem-solving energy if people talked to people. We live in a space where AI can explain everything to us. But people are not changing at the speed of tech.”
Emmanuel Ngunnzi
“What do you expect when everyone is focusing on profit rather than purpose? No wonder everyone is trying to build the next fintech with ‘favourable’ transaction charges.”
These comments highlight a crucial truth—Kenya doesn’t need more startups; it needs more problem solvers.
4. The Difference Between Real Businesses and Startup Hype
Real businesses solve real problems. They don’t hide behind fancy titles, pitch decks, or hashtags. Here’s what they do differently:
✅ They Identify a Genuine Pain Point
Before building a product, successful businesses understand their customers. They know their pain points and design solutions that directly address them.
✅ They Start Small and Test Quickly
Instead of burning millions on a fancy launch, they test their ideas on a small scale. They gather feedback, refine their product, and build a loyal customer base.
✅ They Prioritize Customer Satisfaction Over Funding
For real businesses, the focus is on happy customers, not on impressing investors. They understand that revenue is the ultimate proof of value.
✅ They Keep It Simple
Real businesses don’t overcomplicate things. They build solutions that are easy to understand, use, and scale.
5. How to Build a Successful Startup in Kenya
If you want to build a startup that lasts, here’s what you need to do:
✅ 1. Solve a Real Problem
Ask yourself, “Whose problem am I solving? How big is this problem? Would people pay for a solution?” If you can’t answer these questions, don’t start.
✅ 2. Talk to Customers First
Before building a product, talk to the people who will actually use it. Understand their frustrations, desires, and expectations.
✅ 3. Focus on Value, Not Hype
Stop chasing buzzwords like “AI-powered,” “blockchain-enabled,” or “decentralized.” These terms mean nothing if your solution doesn’t work.
✅ 4. Start Small, Scale Fast
Don’t build a fancy office or hire a big team from day one. Start with a minimum viable product (MVP), test it, learn, and improve.
✅ 5. Build Systems, Not Just Ideas
Successful startups become businesses because they have systems. Customer acquisition, delivery, customer support—everything should be a repeatable process.
6. Ready to Build a Business That Matters?
If you’re tired of the startup hype and want to build something that truly solves a problem, start by learning how to reach real customers. One of the most powerful ways to do this is through digital marketing.
Join our Meta Ads Mastery Class happening on May 24–25. Learn how to create ads that speak directly to your customers—without wasting money.
✅ Register here: https://elvisw.online/meta-ads-mastery-for-business-owners
Final Thoughts
Kenya doesn’t need more startups. It needs more solutions. If your business can disappear tomorrow and nobody would notice, it’s time to rethink your strategy.
Build something that matters. Solve a problem. Create value.
And if you’re ready to turn your idea into a business that truly serves people, start with clear, effective customer acquisition.
✅ Join the Meta Ads Mastery Class: https://elvisw.online/meta-ads-mastery-for-business-owners
