While the country is brimming with entrepreneurial energy, many companies struggle to survive beyond their first two years, often hindered by a lack of finance, market access, and research capacity.
Experts now say the solution lies in a closer partnership between universities and the private sector.
At a five-day summit in Nairobi this week, Mike Mutungi, CEO of I Choose Life Africa, called on Kenyan companies to embrace universities as research and development partners.
“Most businesses don’t have the capacity to invest in R&D.Universities are the perfect place to innovate solutions that address real market problems,” he said.
The summit introduced the Jiinue Accelerator, a program linking businesses with university teams to solve pressing operational challenges.
Participating students take these problems on as research projects, a model known as market-led learning. This approach ensures students gain practical skills while companies receive tailored solutions.
“When students adopt these challenges as their research, they are ready to enter the workforce with real solutions. It’s a win-win for business, academia, and the economy,” he explained.
The initiative has already brought together 13 universities and a range of companies, spanning sectors from technology to electric mobility.
Collaborators include Konza Technopolis, which offers incubation and investment support, and Swedish investors keen on fostering trade with Kenya.
“Collaboration between businesses, universities, and the government is key to stimulating trade and creating employment,” Mutungi said.
The summit also highlighted challenges facing Kenyan enterprises.
Duncan Levinson, assistant professor at a Swedish business school, noted that sustainability compliance is often treated as a checklist rather than an integrated business principle.
“Many Kenyan leaders look at sustainability as rules to follow rather than a way to create long-term value. Universities can help instill these values in graduates, who can then carry them into businesses and communities,” Levinson said.
The professor also urged African universities to rethink traditional models, which are often rigid and outdated.
“The world is changing rapidly. Universities need to focus on creativity, problem-solving, and flexibility. Students should leave with skills that allow them to adapt to multiple careers and solve real-world problems,” he noted.
Participants agreed that research-led partnerships can help reduce the high mortality rate of startups, which sees roughly 75% fail within two years. By diagnosing business challenges, validating solutions through academic research, and linking companies with investors, universities can help turn fledgling enterprises into sustainable businesses capable of scaling regionally and internationally.
The summit underscored the need for multi-stakeholder engagement. Governments, financial institutions, and private investors must collaborate with universities to create the infrastructure, funding, and policy frameworks that allow businesses to thrive.
With such support, experts say, Kenyan companies cannot only grow locally but also compete globally, particularly in markets like Sweden, where demand for sustainable and ethically produced goods is rising.
The call to action is for companies to engage actively with research institutions, for students to embrace market-led learning, and for governments to provide enabling frameworks that turn knowledge into opportunity.
“The potential is enormous. If we harness the creativity, research, and energy in our universities, we can create the next generation of successful Kenyan companies, jobs, and solutions that benefit the entire continent,” Mutungi said.
