Kenya has built a reputation as one of Africa’s biggest startup hubs, attracting billions of shillings from investors looking to back the next big technology company. Some of these businesses promised to transform farming, transport, retail, finance, food and even the automotive industry.

But behind the big funding announcements is a less celebrated side of the startup boom. Thirteen Kenyan startups have collapsed after raising a combined Sh93 billion, leaving behind failed businesses, lost jobs, unpaid creditors and investors forced to write down their bets.

The companies on the list include some of the biggest names in Kenya’s technology sector. Their stories also show that raising millions of dollars is not the same thing as building a business that can survive on its own.

Twiga Foods: Sh24.1 billion

Twiga Foods raised approximately Sh24.1 billion, making it the largest funded company among the 13 that eventually collapsed.

The company was built around a simple idea. Farmers would supply produce through Twiga, which would then distribute it to small shops and retailers. By cutting out some of the traditional middlemen, the company hoped to make the supply chain more efficient while giving retailers easier access to products.

Twiga attracted major international investors and expanded rapidly. But running a large distribution operation requires huge amounts of money for transport, warehouses, employees, technology and working capital.

The company eventually ran into financial difficulties and entered administration in 2026. Its collapse became one of the clearest reminders that a company can raise billions and still struggle to turn rapid expansion into a sustainable business.

Copia: Sh16 billion ¶

Copia was created to serve consumers who were outside Kenya’s major urban centres.

The company relied on a network of agents who helped customers order household goods through technology. The model attempted to bring organised retail to areas where supermarkets and large shops were less accessible.

Investors put approximately Sh16 billion into the business.

Copia expanded its operations and workforce but eventually faced financial pressure. After failing to secure additional funding, the company cut more than 1,000 jobs in 2024 before entering administration.

Its experience highlighted the challenge of operating a large distribution network where every delivery, warehouse and employee adds to the cost of serving customers.

Gro Intelligence: Sh15.3 billion ¶

Gro Intelligence operated in the agriculture and data space, using technology and large amounts of information to provide insights on agriculture, food markets and climate.

The company attracted approximately Sh15.3 billion in funding.

Despite the size of the investment, Gro struggled to keep the business going. The company cut a large portion of its workforce in 2024 before eventually shutting down.

Its failure showed that sophisticated technology alone cannot guarantee survival. Companies still need customers who are willing to pay enough for the service to sustain the operation.

Koko Networks: Sh13 billion ¶

Koko Networks built its business around clean cooking and bioethanol fuel. The company installed fuel dispensers and supplied households with cleaner cooking alternatives. Its business also had a connection to the carbon credit market, which was an important part of its financial model.

Koko raised approximately Sh13 billion. The company later encountered financial problems and entered administration. The collapse affected more than 700 direct employees as well as thousands of agents connected to its operations.

Koko’s story also demonstrates how a startup can be exposed when an important part of its business depends on regulatory approvals and a particular source of revenue.

Mobius Motors: Sh7.3 billion

Mobius Motors took on one of the hardest challenges on the list: manufacturing vehicles for the African market.

The company became known for producing vehicles designed for African roads and difficult terrain. It attracted investors who saw an opportunity to build a local automotive brand rather than relying entirely on imported vehicles.

Mobius raised about Sh7.3 billion. However, vehicle manufacturing requires significant capital, and achieving enough sales to cover production and operating costs proved difficult.

The company eventually shut down its operations in 2024 before the business was later acquired through bankruptcy proceedings.

MarketForce: Sh5.5 billion

MarketForce focused on Africa’s informal retail sector through its RejaReja platform.

The company sought to connect small shops with manufacturers and distributors, allowing retailers to order products through a digital platform.

MarketForce raised approximately Sh5.5 billion.

The business expanded aggressively but eventually struggled to maintain its operations. It was wound up in 2024.

The company’s collapse added another example to the growing list of startups that struggled to balance expansion with the difficult economics of distribution.

Wefarm: Sh4.2 billion ¶

Wefarm used mobile technology to connect farmers and allow them to share information.

The company raised approximately Sh4.2 billion from investors and became one of the better known agricultural technology startups in Kenya.

However, Wefarm eventually shut down in 2022.

Its failure showed that reaching thousands of potential customers does not necessarily translate into a business capable of generating enough revenue to remain operational.

Sendy: Sh3.2 billion

Sendy was one of Kenya’s most visible logistics startups.

The company provided delivery and logistics services and attracted significant attention from investors. It also expanded its services as it tried to become a larger logistics platform for businesses.

Sendy raised about Sh3.2 billion.

Despite the investment, the company was unable to maintain its operations and eventually shut down in 2023.

More than 200 employees were affected by the closure.

The logistics sector can be particularly expensive because companies have to deal with vehicles, fuel, maintenance, drivers, technology and other operating costs.

iProcure: Sh2.2 billion ¶

iProcure focused on agricultural supply chains.

Its technology was designed to connect suppliers of agricultural products with agro dealers and other businesses.

The company raised approximately Sh2.2 billion but eventually entered administration in 2024.

Its collapse illustrates the difficulty of building technology businesses around sectors such as agriculture, where customers can be spread across large geographical areas and margins can be tight.

Lipa Later: Sh2.2 billion ¶

Lipa Later entered Kenya’s growing buy now, pay later market.

The company allowed consumers to purchase goods and pay over time, a model that gained popularity as digital lending and alternative financing expanded.

Lipa Later raised approximately Sh2.2 billion.

However, the company eventually experienced financial difficulties and entered administration in 2025.

The collapse affected more than 200 employees and about 1,000 agents, according to the reported figures.

Kune Foods: Sh130 million ¶

Kune Foods was one of the smaller companies on the list but attracted attention because of its attempt to change how Kenyans bought ready made meals.

The startup raised approximately Sh130 million.

It did not survive for long. Kune Foods shut down in 2022, highlighting how quickly a young company can run through its capital when revenue fails to keep up with expenses.

Zumi: Sh130 million ¶

Zumi operated in online retail and targeted consumers through digital commerce.

The company raised approximately Sh130 million before shutting down in 2023.

Its failure came during a period when investors were becoming increasingly cautious about startups that were spending heavily on growth without a clear route to profitability.

Notify Logistics: Sh50 million ¶

Notify Logistics raised approximately Sh50 million.

The company explored a retail model that provided physical shelf space to online sellers, giving e commerce businesses a way to display their products to physical customers.

The startup eventually closed in 2022.

Its failure demonstrates another challenge facing businesses that combine technology with physical infrastructure. Rent, staff and other operating expenses can quickly consume limited startup capital.

What the Sh93 billion tells us

For years, many startups operated in an environment where investors were willing to provide more capital to companies that were growing rapidly. Some businesses could therefore continue expanding even before they had demonstrated that they could consistently make profits.

That model became much harder when investors started demanding stronger financial discipline.

Companies that depended on another funding round to pay salaries, expand into new markets or maintain operations suddenly faced a serious problem when the money stopped coming.

A startup can have thousands of customers, hundreds of employees and a valuation running into millions of dollars. But if the company spends more money than it generates for too long, the business eventually needs either new investment, debt or a dramatic reduction in costs.

And for thousands of employees who joined these startups believing they were building Kenya’s next major technology companies, the closures have shown just how quickly the startup dream can change when the money runs out.