From KOKO to Twitch: why tech companies keep struggling in Kenya
Kenya likes to call itself the Silicon Savannah, but a run of shutdowns, suspensions and threatened exits has put a spotlight on how government rules shape which tech businesses survive. A Techweez analysis published on October 9 looks at the most prominent cases and argues that regulation is rarely the only cause, but is often part of the story.
The cases
KOKO Networks (January 2026): The clean-cooking company, which sold bioethanol fuel through smart vending points, shut down and went into administration after failing to get government approval to sell carbon credits in international compliance markets. Those credits helped subsidise its cheap fuel and stoves. The closure hit the households that relied on its fuel and hundreds of employees. Techweez notes that commercial and supply problems also played a part.
Swvl and Little Shuttle (2019–2022): In 2019 the National Transport and Safety Authority halted app-based commuter shuttle services, saying the vehicles' licences did not cover that kind of service. Little Shuttle suspended operations from October 2019. Swvl stopped its commuter and intercity services in June 2022, citing difficult economic conditions, and later left Kenya as part of a global retrenchment.
Worldcoin (2023–2025): Tools for Humanity suspended its iris-scanning sign-ups in August 2023 amid concerns about privacy, consent and biometric data. Prosecutors closed a criminal investigation in June 2024, but in May 2025 the High Court ordered the company to delete biometric data it had collected from Kenyans.
Twitch (September 2025): The streaming platform stopped paying Kenyan streamers from September 30, 2025, citing "recently imposed regulations". Kenyans can still watch and stream, but cannot earn. Local coverage linked the move to digital tax rules, although Twitch did not name a specific law.
Mobius Motors (August 2024): The Kenyan maker of rugged SUVs went into voluntary liquidation, citing tax pressures and competition from cheaper second-hand imports. Reuters, quoting a shareholder source, reported that tax increases made the business model unsustainable.
Uber and Bolt (2024): The ride-hailing firms warned MPs, as reported by Daily Nation, that a proposed 6% Significant Economic Presence Tax in the Finance Bill 2024, charged on turnover rather than profit, could make their operations unsustainable. The proposal was changed, and both companies are still in Kenya.
The bigger picture
The common thread is uncertainty: licensing rules that do not fit new business models, taxes on revenue rather than profit, and approvals that never come. As Kenya debates new rules on AI, digital lending and data, the Techweez analysis suggests the real test is whether companies can "comply, invest, and grow without unnecessary uncertainty".
For a country that wants to attract tech investment and jobs, how clear and predictable its rules are may matter as much as what the rules say.
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