Kenya with the publishing of the Startup Bill as an act of Parliament, is now part of the African countries who have a Startup Act.
The new act will help the East African nation properly encourage investments, encourage innovation and also provide the right legislative structure which will properly steer the creation of incubation centers by the county governments and national government.
All startups who eligible for the incubator program must first be registered in Kenya as non-governmental organizations, partnerships, or companies.
Any startup that is interested, must not he older than seven (7) years in operation from the date or point of registration. For biotechnology startups or ventures, they must not be older that ten (10) years.
The Startup Act states that any startup looking to set up shop in Kenya or interested in participating in any of the country’s national level incubator programs must have majority local ownership.
For startups interested in participating in any incubation program, they must dedicate not less that fifteen (15) percent of their expenses to development and research purposes.
The new act will also ensure that a registrar of startups is established and chosen by the Public Service Commission. The Registrar once appointed, will be in charge of maintaining the records of all startups that are registered, their financial needs, investments, as well as their products.
A Credit Guarantee Scheme could be set up by the Kenyan government as well, as a way to support and encourage the growth of startups in the country. Once set up, the Credit Guarantee Scheme will also provide financial support to startups and be a guarantee for investors who are interested in startups.
The National Innovation Agency will in addition and under the newly enacted Startup Act, help facilitate the intellectual property rights, subsidize the creation of startups, and offer support in research and development.
It will also connect startups to investors, research entities, financial investors, as well as various players in the private sector.
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