Kenya: Start Ups Hang in the Balance as Senators Face Tight Timeline to Conclude Bill

Nairobi — All eyes are on Members of National Assembly who are set to begin debating a bill that sought to provide a regulatory framework for startups in Kenya which has been formally introduced in the chambers after it was approved by the Senate.

The Startup bill (2020) which is authored by Nairobi Senator Johnson Sakaja seeks to among others provide incentives to startups and promote an enabling environment for the establishment, development, the conduct of business, and the regulation of startups.

With a tight timeline ahead of the August General Elections, the MPs have up to June 10 to pass the bill which also seeks to establish incubation facilities at the National and county levels of government.

Should the bill fail to be debated before the House adjourns, it will elapse degenerating the efforts put in place to create an enabling environment for startups in Kenya.

However, Sakaja will have to look for a new Member of Parliament(MP) who will revive the bill in the 13th Parliament.

If passed to law, the Bill proposes to establish the Kenya National Innovation Agency to create partnerships among local and international business incubators; create online directories of start-ups and incubators, and register and certify start-ups and incubators.

Under the Bill, the Agency will support novice technological entrepreneurs at the earliest stage of technological entrepreneurship and facilitate technological innovators to implement their ideas and form new business ventures.

The agency will also facilitate the protection of the intellectual property of innovations by startups in Kenya and with international organizations and provide fiscal and non-fiscal support to startups admitted into incubation programs.

“The bill, therefore, seeks to provide a legislative framework for the registration of startups and the linkage of such startups with financial institutions, the private sector research institutions and such other institutions at the National and county level of government,” the bill read in part.