Kenya’s startup ecosystem has attracted billions of shillings in venture capital over the past decade, helping companies build digital platforms in areas ranging from agriculture and logistics to fintech, e-commerce and climate technology.
But raising large amounts of capital has not guaranteed survival.
Thirteen Kenyan startups raised a combined about Sh93 billion before shutting down, entering administration, being liquidated or abandoning their original business models. Their experiences highlight some of the challenges of building high-growth companies in markets where logistics, infrastructure, purchasing power and access to follow-on funding can put pressure on already-thin margins.
The companies include Twiga Foods, Copia, Gro Intelligence, Koko Networks, Mobius Motors, MarketForce, Wefarm, Sendy, iProcure, Lipa Later, Kune Foods, Zumi and Notify Logistics.
Across the group, several common problems emerged: capital-intensive operations, weak unit economics, high operating costs, macroeconomic pressures and difficulties raising additional funding after the global startup funding slowdown that followed the 2021 boom.
- Twiga Foods — Sh24.1 billion
Twiga Foods sought to modernize Kenya’s fragmented fresh-produce supply chain by connecting farmers with urban vendors and informal retailers through technology. The company combined its digital platform with warehouses, inventory, logistics and credit. That gave Twiga significant operating costs beyond the technology itself.
Despite raising about $185 million, the company did not reach profitability over roughly 12 years. Warehousing, cold-chain requirements, transportation, inventory and food spoilage contributed to its cash requirements.
Twiga also faced unpaid supplier bills, disputes involving cloud services, multiple rounds of layoffs and changes in senior leadership. Attempts to restructure the business included moving toward a lighter operating model and pursuing acquisitions.
A $35 million convertible bond provided additional funding, but it was not enough to stabilize the business. Twiga entered administration in 2026.
- Copia — Sh16 billion
Copia built an e-commerce model aimed at customers who lacked smartphones, bank accounts or formal addresses. Instead of relying entirely on conventional online shopping, Copia used local agents who helped rural consumers order everyday products. The company also operated warehouses and last-mile delivery networks.
That model addressed a real access problem, but serving dispersed rural customers came with high costs. Warehousing, inventory, agent networks and delivery expenses weighed on margins while many of the products sold were relatively low-value.
Copia raised about $123 million but did not achieve profitability. It later closed its Uganda operations, reduced its workforce and entered administration in 2024 before eventually being liquidated.
The funding downturn made it harder for Copia to continue financing a model that required substantial capital to maintain its operations.
- Gro Intelligence — Sh15.3 billion
Gro Intelligence developed an artificial intelligence-powered platform providing agricultural, climate and commodities data. The company raised more than $117 million and reached a reported peak valuation of about $850 million.
However, turning sophisticated technology and large amounts of data into recurring, scalable revenue proved difficult.
Gro experienced payroll problems, major layoffs affecting about 60% of its workforce and the removal of its founder and CEO. Emergency funding was not sufficient to keep the business operating, and Gro Intelligence shut down in 2024.
- Koko Networks — Sh13 billion
Koko Networks developed a clean-cooking model based on ethanol fuel and subsidized cookstoves distributed through automated dispensing points. The company said its network served about 1 million to 1.5 million homes. Its financial model, however, depended heavily on revenue from carbon credits.
Koko’s operations were affected when the Kenyan government did not issue the Letter of Authorisation required for international carbon-credit transactions under relevant Paris Agreement mechanisms.
Concerns surrounding the volume of claimed emissions reductions, data quality, impact measurement and transparency were among the issues surrounding the carbon-credit model.
Without the anticipated carbon revenue, maintaining subsidized cooking products became difficult. Koko subsequently entered administration and began winding down its operations in early 2026.
- Mobius Motors — Sh7.3 billion
Mobius Motors attempted to build rugged, relatively affordable vehicles designed for African road conditions. The company faced high manufacturing costs and a relatively limited market for new locally produced vehicles, while Kenyan consumers have access to cheaper second-hand imported vehicles.
Mobius also accumulated debt and became involved in a major tax dispute with the Kenya Revenue Authority. After around 13 years of operations, Mobius Motors entered voluntary liquidation in 2024. Its brand was later linked to an acquisition or takeover.
- MarketForce — Sh5.5 billion
MarketForce developed RejaReja, a B2B e-commerce platform that allowed informal retailers to order fast-moving consumer goods digitally. The company expanded rapidly, but the economics of FMCG distribution remained challenging. Products generally have low margins, while fulfilment and distribution add costs.
MarketForce also faced price-sensitive customers and the broader decline in startup funding following the 2021 investment boom. The company closed RejaReja in 2024, laid off employees and reduced its presence in some markets. It subsequently shifted toward Chpter, a social-commerce business.
- Wefarm — Sh4.2 billion
Wefarm created an SMS and online network that allowed smallholder farmers to exchange agricultural information. The platform attracted millions of users, but converting that engagement into sufficient revenue proved difficult.
Many of the farmers served had limited purchasing power, while attempts to expand into commerce through WeFarm Shop created additional costs. WeFarm shut down in 2022 after raising tens of millions of dollars.
- Sendy — Sh3.2 billion
Sendy connected businesses with transport providers and also offered fulfilment services. Although its technology connected customers and logistics providers, the underlying business remained heavily dependent on physical infrastructure and transportation.
Vehicles, fuel, insurance, drivers and fulfilment operations created substantial costs. The company was reported to have been burning about $1 million per month during a period of rapid expansion.
Rising fuel prices, currency pressures and expansion into multiple markets and products added to the financial strain. Sendy also struggled to raise a targeted $100 million. Sendy subsequently carried out layoffs, shut down products, exited markets and eventually entered administration and ceased operations around 2023.
- iProcure — Sh2.2 billion
iProcure operated a B2B agricultural distribution model supplying products such as fertilizer, seeds and other farm inputs to rural agro-dealers. The model required substantial working capital because the company had to finance inventory and transportation.
Cash-flow problems, unpaid debts and high operating costs weakened the business. Foreign-denominated debt also became more expensive as the Kenyan shilling depreciated. The company’s dependence on fertilizer sales created another challenge when government subsidies affected the market.
After failing to raise additional capital, iProcure entered administration in 2024. Some of its technology and intellectual property were later used in a lighter business model.
- Lipa Later — Sh2.2 billion
Lipa Later operated a buy-now-pay-later model in which it paid retailers upfront and collected instalments from consumers. The model required substantial capital because the company had to finance customer purchases before receiving the full repayment.
The business was hit by repayment problems during the COVID-19 period, followed by increased defaults and fraud concerns. Some customers reportedly bought goods and resold them, creating additional risks.
Currency movements also created pressure because some liabilities were denominated in US dollars while revenues were primarily in Kenyan shillings. The sharp depreciation of the shilling increased the burden of those liabilities.
Investor disagreements and difficulties securing additional funding added to the company’s problems. Lipa Later entered administration in 2025.
- Kune Foods — Sh130 million
Kune Foods offered prepared meals through a delivery-focused cloud-kitchen model. The company targeted relatively low prices of about $3 per meal, leaving limited room to absorb rising operating costs.
Kitchens, employees, packaging, suppliers and delivery operations created significant fixed and variable expenses. Food inflation further squeezed margins.
It raised about $1 million but failed to secure a follow-on funding round as the startup market tightened. Kune Foods shut down in 2022 after selling tens of thousands of meals but failing to reach a sustainable level of operations.
- Zumi — Sh130 million
Zumi began as a digital media platform focused on women before moving into B2B commerce. Its later model connected clothing retailers with suppliers and also included elements of financing.
Although the company generated sales, thin margins and logistics costs made the business difficult to sustain. COVID-19 disruptions, import restrictions and broader economic pressures added to the challenge.
Zumi could not secure enough additional funding to continue operating and shut down in 2023, laying off about 150 employees.
- Notify Logistics — Sh50 million
Notify Logistics operated a “rent-a-shelf” model aimed at small online sellers that could not afford their own physical retail locations. The company leased commercial space, divided it into shelves and rented those spaces to merchants.
The model carried substantial fixed costs. Some Nairobi locations reportedly cost about Sh800,000 per month, while shelf rentals generated relatively small amounts of revenue. Management and collection problems added to the financial pressure. Notify Logistics shut down in 2022.