This article comes from WeChat public account “Fei Cheng Innovation” (ID: Future-Hub), 36 , released with permission.Barometer of macro environment 1. Politically, it is generally stable and open, and local security risks need to be vigilant.(1) The market is open and business freedom is high, and it is the gateway for absorbing foreign capital in East Africa.Thanks to the market economy system, open trade system and loose foreign exchange policy, Kenya’s regional financial, logistics, and shipping hubs in Eastern Africa play a significant role.Its main city, Mombasa, is the largest port city in East Africa, and Nairobi is the financial center of East Africa, absorbing capital, technology and talent from around the world.In 2019, Kenya rose from 61st in the world in 2018 to 56th in the Doing Business ranking of the World Bank, second only to Mauritius and Rwanda in sub-Saharan African countries.(2) Pragmatically develop people’s livelihoods and promote the 2030 vision with the ICT industry.Kenya currently implements a multi-party democracy. Elections are held every five years. The president has the highest executive power and cannot exceed two terms.Uhuru Kenyatta, the current president, took office in 2012 and is now in his second term.The “Big Four Action Plan” he proposed in 2017 continues Kenya’s “Vision 2030” “Vision 2030” and plans to vigorously develop food safety, affordable housing, manufacturing and flat prices by 2022Medical industry.At the same time, the Kenyan government also places great emphasis on the role of the ICT industry in achieving its development vision.In May 2019, President Kenyatta released the Digital Economy Blueprint at the Transform Africa Summit to focus on the five pillar industries related to ICT, including digital government, digital commerce,Infrastructure, entrepreneurship and digital skills training.(3) Although the overall political situation is stable, local insecurity factors are still worthy of attention.First, recent elections have often been accompanied by conflict.Although the Jubilee Party is currently the largest party, the opposition party “CORD”, led by Odinga, has been active among the people.In the 2012 and 2017 election years, violent activities took place in Kenya, and even in 2017, elections were reorganized due to voting disputes.Uhuru Kenyatta, the current president, has begun his second term after 2017 and is about to usher in the next general election in 2022.Second, regional terrorism poses a potential threat to Kenya’s political situation and social order.In 2011, the Kenyan and Somali military jointly launched a military operation against the extremist organization “Al-Shabaab” (associated with Al-Qaida) in Somalia. The al-Shabaab retaliated against it and organized frequent terrorist activities in Nairobi and Mombasa.Increasing regional unrest and instability.In September 2013, 70 people were killed in the terrorist shootings in the bustling shopping center of Nairobi. In January 2019, an upscale hotel in Nairobi was bombed and 14 innocent people were killed and injured, including locals and foreigners in Kenya..2. The economy is growing steadily, and good infrastructure and service industries continue to provide momentum for development.(1) GDP growth has picked up, and the government has adopted policies to respond to inflation.Kenya is the largest economy in the East African region. In 2014, it broke away from the status of a low-income country and became a lower-middle-income country with a current GDP of US $ 87 billion.GDP per capita is about US $ 1700, ranking highest among East African Community countries.From 2000 to 2016, Kenya’s GDP grew steadily, with an average annual growth rate of 5.8%, and neighboring countries averaged 3.7%.Although its GDP growth in 2017 was affected by political instability and arid climate, it fell to 4.9%.Thanks to the increase in household consumption in the past two years, the annual growth rate of GDP has recovered to about 6%.The World Bank expects Kenya’s economy to maintain a steady rise in the medium term.From the perspective of macroeconomic indicators, Kenya adopts a floating foreign exchange rate, which is relatively stable and has sufficient foreign exchange reserves.However, in recent years, high inflation has become a challenge for Kenya’s sustainable economic development.In the first half of 2017, it once surged to 12%.In order to regulate inflation, the Kenyan central bank implemented interest rate control, stipulating that the bank loan interest rate is not higher than the central bank’s benchmark interest rate of 4%, but this has also caused a certain degree of credit tightening in the market.(2) The infrastructure is good, and the growth of the service industry is normal.Kenya is the most industrially developed country in East Africa and has a complete power, transportation, and communications infrastructure. Among them, the penetration rate of power and energy services is 63%, which is much higher than the average level in Africa.At the same time, the development of the service industry has taken the lead in neighboring countries. In recent years, it has surpassed agricultural development and leapt into a pillar industry, accounting for 47.5% of GDP.(3) The deepening of finance and the improvement of capital market liquidity are fertile ground for the development of financial technology.As a regional financial center in the entire East African region, Kenya’s banking industry has developed rapidly. Currently there are 27 local commercial banks and 13 foreign banks.In 2019, Kenya’s total bank assets rose by 10.1%, about 49.5% of GDP. 73% of the population lives within 3 kilometers of financial institution outlets, and public confidence in the banking industry has gradually increased.In addition, the popularity of mobile wallets is very high. In 2018, users’ mobile wallet deposits increased by 12.4% compared with last year. So far, there are nearly 31.6 million active mobile wallet users, accounting for more than 60% of the population. The mobile transfer amount per minute is nearly 15 millionShillings ($ 148,000), deposits and payments on mobile wallets per minute are about 21 million shillings ($ 200,000).Kenya’s private equity investment activity is also much higher than other East African countries. According to AVCA research, the private equity market transactions accounted for 59% of East Africa’s volume from 2013 to 2018.In addition, the Nairobi Stock Exchange (NSE) was established in 1954, which was the earliest national exchange established in the sub-Saharan region.As of 2018, there are 65 listed companies. In terms of trading volume, the Nairobi Stock Exchange ranks 4th out of 29 stock exchanges in the African region. 3. At the social level, young elites are emerging and the gig economy may become mainstream.(1) The population is young and highly educated, providing sufficient human capital for social development.Kenya currently has 51 million people, growing at a rate of 2.5% per year, and is expected to reach 85 million by 2050.The population structure is highly young. Three-quarters of the population is younger than 30 years old. Compared with neighboring countries, Kenya has a high penetration rate of basic education. The literacy rate of young people between the ages of 15-24 is as high as 87%.In addition, a young middle class is on the rise.According to the standards of the African Development Bank, in African countries, people with a daily expenditure between 2-20 dollars can be defined as the middle class.In Kenya, 44.9% of the population meets this criterion, and their demand for durable goods, housing and car mortgages is increasing.(2) The high unemployment rate provides opportunities for the development of the gig economy.In Kenya, the unemployment rate of young people aged 20 to 24 reaches 19%, which is higher than the average level in other African countries, and the total unemployed population reaches 2 million.And 80% of employed people are concentrated in the informal sector.At the same time, due to the rapid growth of the overall population, there are still 1 million young people who need to enter the labor market every year. Local employment opportunities are limited and they cannot absorb all labor.The gig economy has developed in this context.According to research by Mercy Corps, the gig market (especially online gig information and job search platforms) will reach USD 190 million in 2019, with travel platforms and job search platforms accounting for 41% and 50% of each, and it is expected thatWithin 5 years, it will continue to develop at an annual growth rate of 33%. By 2023, the overall market size will reach 300 million US dollars.4. Investing in Kenya requires attention to environmental risks.Kenya attaches great importance to environmental protection and wildlife protection. The “Environmental Impact Assessment Regulations” requires enterprises to submit environmental assessment reports to the Kenya National Environmental Management Committee and obtain their approval before applying for other licenses.In addition, non-governmental and non-profit organizations related to environmental protection and wild life are active in Kenya, putting pressure on non-compliant companies.Previously, the Mombasa-Nairobi Standard Gauge Railway (SGR), constructed by a Chinese company, had been subject to large-scale protests from local wildlife organizations due to its route across national parks.Similarly, the Lam Old Town coal-fired power plant contracted by China has also been stopped because of its impact on the local environment.Doing adequate environmental and ecological impact assessment is one of the indispensable links for investing in Kenya.5. The legal system is close to Europe and the United States, and the importance of compliance cannot be ignored.Since Kenya was once colonized by the British, Kenyan law basically follows the British and American legal system. In terms of specific regulations and policies, it also strives for international standards.For example, the Labor Law has strict steps on the dismissal process.In addition, in November this year, Kenya introduced a data protection law, which was compiled in accordance with the General Data Protection Regulation (GDPR) introduced by the European Union in 2018, which limits the permissions of Internet companies and other companies that use user data.It’s not long, and the impact and effectiveness need to be wait and see.In addition, to attract foreign investment, the government has also introduced relevant laws to give foreign investors confidence.For example, the Foreign Investment Protection Law and Investment Promotion Law ensure that assets are not compulsorily levied by the government, and the Public-Private Sector Capital Cooperation (PPP) Act also attracts social capital to participate in the construction of public projects.However, corporate tax rates are still relatively high.The domestic corporate income tax rate is 30%, and the foreign-funded enterprises are 37.5%.New Dynamics of the Digital Economy 1. The ICT infrastructure is complete and the underlying buildings of the digital economy are stable.Thanks to the laying of several cables on the sea floor, Kenya ’s mobile Internet data transmission speed averages 13.7Mb per second, ranking 14th in the world and even taking precedence over the United States.In addition, Kenya’s broadband Internet speed is also ahead of other African countries, with an average of 12.2Mb per second, ranking third in the Middle East and Africa region.3G coverage is about 85% and 4G coverage is about 30%.2. The popularity of mobile phones and mobile Internet is high, the use cost is low, and the consumption habits of male and female users are different.In Kenya, 91% of people own a mobile phone, of which 30% are smart phones.The penetration rate of mobile Internet is 84%, and about 43 million people can access the Internet through mobile phones.Mobile network traffic rates are decreasing year by year. Take Telkom as an example. The daily data rate for 500MB is 50 shillings (US $ 0.5).However, a study by the Alliance for Affordable Internet shows that male and female consumers differ in their data plan choices.70% of female users will buy packages of 350MB and below, less than 10% will buy packages of more than 1GB, and more than 32% of men will choose packages of 1GB and above.3. The use of social media and mobile wallets is normal, and mobile services have a lot of room for development.There are currently 8 million active social media users in Kenya. They spend an average of three hours a day on social media, with Whatsapp, Facebook and Twitter being the most used.In order to meet user needs, telecommunications companies will also add Whatsapp options to their data and call plans.In addition, Kenya has a total of 47 million mobile wallet accounts with a transaction volume of 3.6 billion in 2018. In addition to P2P transfers, more and more users are accustomed to using mobile wallets for offline and online transaction payments and access to credit services.There are currently more than 300 microfinance apps in Kenya.According to Frost & Sullivan’s forecast, by 2020, the size of the mobile services market will grow to $ 5.1 billion.In addition, although Kenya is an English-speaking country, Swahili is common in daily communication.According to statistics, there are more than 30,000 APPs that provide Swahili versions.It is foreseeable that mobile phone-based mobile service products will become more diverse in the future.Comprehensive interpretation of venture capital ecology 1. Local entrepreneurial atmosphere is strong, and head companies are ready to go.In Africa, Kenya ’s venture capital ecology has been developing for the longest and is one of the most developed.According to incomplete statistics, there are about 200 startups, including nearly 70 Internet startups.Entrepreneurs’ background is mainly based on management positions in large Kenyan companies, multinational companies, Jumia and OLX. As OLX closed its Kenya office, some OLX executives started Internet entrepreneurship.The verification time of most entrepreneurial teams is about 2 years, and most of them rely on their own funds in the early stage. External seed round financing starts in about 2 years.Due to the early start of the entrepreneurial wave in Kenya, several dark horses have been favored by international capital in the past two years.For example, B2B food supply chain platform Twiga Foods, the latest round of financing of 23.8 million US dollars, led by Goldman Sachs in October this year; rural e-commerce company Copia Global won 26 million US dollars in Series B financing in November this year, led by British influence investment agency LGT Lightstonecast.In addition, Cellulant, a 2B payment service company, received US $ 47.5 million in Series C financing, and Andela, an education technology company that received US $ 100 million in Series D financing, are rare startups in Africa that have entered Series C and Series D.2. There are many investment institutions, and the popularity of financing is heating up year by year.In addition, due to Kenya’s economic, commercial, financial and logistics leadership in East Africa, it has attracted the attention of many investors.In addition to European and American investment institutions such as TLcom Capital and AHL Venture Partners, which have cultivated in Africa, many local venture capital institutions have also emerged in recent years, such as Novastar Ventures and Savannah Fund.In terms of overall financing scale and activity, Kenya leads other East African countries.According to Disrupt Africa research, more than 500 startups have raised more than $ 400 million in Kenya.In 2018, Kenya ranked first in the ranking of start-up financing countries across the continent (taking into account the amount of undisclosed financing), with 44 companies receiving a total of $ 348 million in financing.2019 is also a bumper year for financing. Lori Systems, a star logistics company, and Copia Global, an e-commerce company, have invested US $ 30 million and US $ 26 million respectively.3. Incubators are dense, and venture capital ecology is booming.There are as many as 48 institutions focusing on early-stage entrepreneurship incubation, second only to Nigeria and South Africa in sub-Saharan Africa. Such support not only attracts more outstanding entrepreneur teams, but also makes the ecosystem closer.The main local incubators include: iHub: Established in 2010, it is the most famous incubator in Kenya. At present, it mainly relies on space rental, research and consulting, and hosting events to make profits. It has been acquired by ccHub in Nigeria.The space covers an area of ​​25,000 feet and can accommodate nearly 100 companies with rents ranging from $ 80 to $ 1,000.It has cooperated with nearly 300 startups, covering multiple fields, and also provided funding to startups. The companies in its portfolio have raised over 40 million US dollars.At the same time, we have reached cooperation with many well-known multinational companies, Google, Intel, Hivos, Barclays, Microsoft, Qualcomm, Seacom, Google for Startups, Omidyar, The World Bank, Facebook, Safaricom, Oracle, etc.iLab: iLab is located in Strathmore University, one of the best private universities in Kenya. It is a non-profit, relying on university resources and the sponsorship of multiple multinational companies, supporting nearly 100 entrepreneurs, providing guidance, seed funding, space,Legal services and financial consulting services.Main track opportunities and interviews with representative companies 1. Like other African countries, the fintech track has a large proportion of the informal economy in the Kenyan economy. Many start-ups have gathered in the fintech field to address the lack of or insufficient access to fintech.Financial services provide services to people.Kenya is in the forefront of Africa in the field of fintech, mainly due to the widespread application of mobile payments.In 2007, M-pesa was launched by the operator Safaricom and provides services such as transfers, loans, savings and more.Since then, various financial innovations have emerged.As of 2019, more than 22.6 million people use M-pesa.The segments of this track mainly include: (1) Microloans are based on higher mobile phone penetration rates and better mobile payments. Microfinance products are very popular.Among them, 35% of the borrowing demand is household daily consumption, telephone recharge, personal or household goods, 37% is commercial demand, and only 7% is used for medical emergency.At present, there are about 49 platforms that can provide instant cash loans.However, increasing bad debts are also an urgent problem.Since some cash loan platforms are not financial institutions, they are not regulated by Kenya’s current Banking Law, Microfinance Law and Kenyan Central Bank Law. This industry is still in an extensive stage of development.Although there are many players in this field, we believe that there is still room for further development and expansion to other East African regions.The main companies in this field are: Tala: Currently it has entered the D round, with a total of more than 200 million US dollars in financing. Investors include Revolution, Paypal, etc.Tala operates in Southern California, Kenya, Mexico, the Philippines and India.The range of loans provided is $ 10-500. Branch: The accumulated financing is $ 170 million. Investors include IFC, Visa, Foundation Capital, etc., and currently operates in Nairobi, San Francisco, Mumbai, Mexico and Lagos.(2) Cross-border transfers For most African countries, traditional cross-border transfers take a long time and are costly.At present, the more common method of international transfer is swift (covering 200 countries, 10K + banks and financial institutions). The disadvantage of swift is that it takes a long time.6%.Some startups have also emerged on this track, and through technological innovation to reduce fees and transfer time, the challenge of this track is mainly how to form scale effects and compliance with foreign exchange.The main companies in this field are: BitPesa: Established in 2013. It completes cross-border transfers through blockchain technology, collects 3% commission, and accumulatively raises $ 30 million.Chipper Cash: A mobile cross-border P2P money transfer platform with a cumulative financing of $ 8.4 million.Launched in 2018, it provides fast domestic and overseas transfer services. It has nearly 600,000 active users and 3 million transfers in Ghana, Uganda, Nigeria, Tanzania, Rwanda and Kenya.Cooperation with Paystack in September this year has expanded to Nigeria.Wapipay: Founded by former interswitch CEO of East Africa and former head of Ocash, the main business is payment gateway business between Africa and Asia.Rely on various partners to complete cross-border transfers between Africa and Asia (including individual-to-person, inter-company transfers, bulk payments), and charge a 2.5-3% rate.(3) SACCO Digital SACCO (Saving and Credit Cooperative Organization) is a savings and credit cooperative whose goal is to save savings for members and then provide them with credit facilities.The overall goal of SACCO is to promote the economic interests and overall well-being of its members.Kenya’s SACCO is currently one of the main sources of socio-economic development cooperation credit.The cooperative movement now accounts for more than 45% of Kenya’s gross domestic product, and it is estimated that at least one in every two Kenyans makes a living directly or indirectly from cooperatives.For many years, the cooperative movement was mainly agricultural-oriented.Recently, however, the cooperative movement has undergone significant diversification in activities and benefits, especially savings and credit.Other non-agricultural cooperatives have emerged at the historic moment and are involved in areas such as housing.SACCO is one of the main sources of rural finance, and in many rural areas, local SACCO is the only financial service provider.Although the exact number of SACCOs operating in Kenya is unknown, estimates range from 4,000 to 5,000.In recent years, some startups have made many technological innovations around the digitalization of SACCO.Key companies include: FinAccess: Provides digital solutions for SACCO and other partner organizations, freeing them from paper and tedious spreadsheets for daily operations.The main sources of profit are SaaS usage fees and transaction costs.At present, it has cooperated with 66 SACCOs. It is the largest one in Kenya in this field, with revenues of more than 1 million US dollars in 2019, covering more than 400,000 users.Kwara: Selected as the Google launchpad program in 2019, the main service is to provide a digital platform to SACCO and other cooperative organizations to complete identity verification, payment collection, lending, statistical analysis, etc.(4) Supply chain financeSince September 2016, Kenya has set the upper limit of commercial loan interest rates to be four percentage points higher than the central bank’s benchmark interest rate (currently 9.5%).Although its purpose is to limit the borrowing costs of enterprises and individuals, it has produced the opposite effect to a large extent. Banks believe that SMEs are too risky to lend.Some start-ups cut into this track, instead of directly providing cash loans to SMEs, but through supply chain finance methods, such as factoring and confirmation, compared to personal loans, SMEs can produce daily flow andAssets and other evidence prove that the risk of bad debts is low.The representative startup in this area is Zanifu, the founders of which are from Sendy and Kopokopo.The monthly interest rate is about 7-10%. At present, about 2,500 loans are provided each month, nearly 280,000 US dollars, and interest income is about 50,000 US dollars.So far, US $ 2 million has been lent, US $ 32,000 of bad debts, and the bad debt rate is less than 2%.Each loan averages $ 110.2. Logistics technology track Kenya’s logistics industry has an annual growth rate of 15%, and the market size is expected to reach $ 5 billion in 2023.The logistics cost of the African market accounts for 40-60% of the cost of goods, compared with 6% in the United States, there is a lot of room for cost reduction.At present, Kenya’s logistics start-up companies focus on the following three areas: 1) Integration of rural and urban markets, lack of adequate road infrastructure in rural areas, a large part of the population disconnected from the supply chain, and narrowing the gap between urban and rural areas is the logistics industry.2) to provide an efficient and cost-effective digital logistics platform to match supply and demand; 3) B2B services, despite the rapid urbanization and the increase in e-commerce penetration, consumer-oriented logistics participants see considerableGrowth, but in the short to medium term, business-centric companies are expected to dominate Africa’s logistics sector.The main logistics technology companies are: Lori: A round of financing has been completed.Established in 2016, it provides mobile on-demand trucking services, docking merchants and truck drivers, mainly operating in East Africa, and has now expanded to Nigeria.Sokowatch: Completed $ 2.5 million in seed funding.Established in 2016, providing fast delivery to small and medium-sized offline stores.Currently operating in Kenya and Tanzania, 500,000 orders have been distributed to 10,000 small retailers.In sub-Saharan Africa, there are nearly 10 million informal retailers.Bwala: The last mile logistics company plans to start a Series A financing of USD 5-8 million.Established in 2017, has completed 100,000 orders, currently 700-850 orders per day, customers are mainly e-commerce, retailers and manufacturing companies.The target is 2000 agents in Kenya, 6000-8000 orders per day.Sendy: Raised a total of $ 27.5 million.Established in 2015, the platform integrates transportation resources such as motorcycles, trucks, and trucks, and has completed 180,000 orders. There are 700 drivers on the platform, and the revenue in 2018 was US $ 1.5 million.M-Post: Recently completed Series A financing of US $ 1.9 million.Established in 2015, MPost has partnered with Kenya Post and Safaricom, and users can get their own virtual post office address through their mobile phone number.When the courier package or letter arrives at the physical post point, the user will receive a text message reminder and choose whether to go to the post point to pick it up or deliver it to the door.More than 40,000 users have received 22,000 packages via MPost, and the user retention rate is as high as 85%.Its business has now expanded to Uganda and plans to open markets in Rwanda, Botswana, Kenya and South Africa.In sub-Saharan Africa, where physical address infrastructure is underdeveloped, MPost’s mobile postal solutions help further the growth of the e-commerce and logistics industries.3. Travel Technology Track Kenya’s travel problems are mainly focused on how to provide cheaper and more efficient travel in a crowded city.At present, there are 7.25 million people in the top 5 densely populated cities in Kenya, of which 4.4 million are in the capital Nairobi. The number of registered vehicles is 25,000 to 32,000. It is estimated that the number of vehicles will be 1.3 million in 2030, and the gap in transportation is obvious.Similar to other African countries, Kenya lacks an effective public transportation system. More than 75% of the total number of daily trips made by the poor in Africa are walking, and ordinary taxis and motorcycle taxis account for 75% to 80% of the total number of motorized trips in Africa.At present, there are 60 companies travelling on the Internet in the African continent. Considering public demand, traffic conditions, convenience, actual purchasing power, consumption frequency and other factors, most start-up companies travel on two-wheeled motorcycles (the market size is expected to be 4 billion US dollars).Among them, Go-ventures under Go-Jek supports Uganda’s motorcycle travel company safe boda, which has expanded to Kenya to compete with the two-wheeler boda service of uber and taxify.The four-wheel-drive ride-hailing companies are mainly Uber, Taxify (Bolt), inDriver, and have entered the Kenyan market since 2014. Players on this track also include Safaricom’s Little Cab.At the same time, Safaricom’s little shuttle and Egypt’s swvl are also competing in the minibus market.Kenya is also Uber’s second largest market, with 364,000 active users and 6,000 drivers. As of August 2018, UberX’s lowest passenger fare was $ 1.75 in Nairobi, $ 1.81 in Johannesburg, and $ 1.11 in Lagos.Other local players include: Little: launched in 2016, Safaricom’s products have now expanded to Uganda, Zambia, Tanzania and Ghana.It has raised USD 50 million and has a valuation of 70-75 million.Support M-Pesa payment (94% penetration rate in Kenya), while allowing feature phone users to book cars through USSD, free wifi is provided in the car.In addition to the online car rental business, there are also motorcycle online rental and bus services.Currently there are 10,000 drivers, 1 million users, 60% in Kenya, and 12,000 orders per day.The driver is also M-Pesa’s agent.Maramoja: Launched in Kenya in late 2013 and plans to expand to Ethiopia, Cameroon and Ghana over the next 18 months.The platform matches each other based on the social relationships between passengers and drivers.Angel round financing has been completed.Taxify and Uber still dominate the overall market of African four-wheeled ride-hailing. Both of them are losing money in Africa. The investment in the African market is a long-term strategic investment. There are local players or other multinational players in different regions.However, the volume and growth rate are relatively small; four-wheelers are still the way for people above the middle class to travel. The general demand in the mass market is about two-wheeled motorcycle networks. Therefore, Uber and Taxify have localized in the African market.Adjusted, added the service of boda motorcycle travel, the second round of travel is currently the most fierce competition on the Internet; specific to the East African market, Kenya, Uganda, Tanzania has been well educated by Uber, Taxify, Little and other, can be used asConsider the size and volume of an overall market.4. Local life track: Information classification website Olx entered Kenya in 2012, with 100,000 users and 1 million categories. There are many categories such as electronics / cars / mobile phones and real estate. Farmers will also use this website to sell agricultural products. 2019Nigeria-based company Jiji acquires Olx’s operations in Kenya, Uganda, Ghana and Tanzania.Uber eats officially operated in Nairobi in May 2018. It connects to 100+ restaurants and supports cash, m-pesa, and bank card payments. The delivery fee is about $ 1.5.Then in August 2018, Jumia Food announced operations in Kenya.In 2019, GLOVO, a Spanish on demand distribution service provider, entered the Kenyan market and guaranteed delivery to customers within 45 minutes.Thanks to a better payment and logistics infrastructure, a large number of local life services startups have appeared in recent years, such as: CarPros: the founders are former Olx employees.Most of the existing cars in Kenya are used cars, and the transaction demand for used cars is relatively frequent.Car owners can use the car broker on CarPros to value the car and sell it on its behalf, without the need to personally connect with potential buyers.The platform charges certain upfront fees and commissions.Gobeba: The founder is a former Olx Kenya national manager who provides gas tank inflatable distribution services. In the future, it aims to provide customers and small businesses with a variety of services through on-demand logistics services, including grocery shopping, gas stations, parcels, food and beverages, etc..Sumo: Kenya’s “public comment”, provider information and various discount coupons.The local life track needs a certain amount of middle-class purchasing power. The Kenyan National Bureau of Statistics (KNBS) stated that the monthly expenditure of the Kenyan middle-class is between 23,670 Kenyan shillings (about US $ 236) to 199,999 (about US $ 2,000)According to this standard, the number of middle-class groups in Kenya is currently small, but growing.At the same time, local services have the endowment conditions that were born in Kenya because of better infrastructures in payments and travel than in other African regions.The long-term education of large companies such as Uber, Olx, Jumia, etc. has also made subsequent local service startups save the cost of educating users.5. Agricultural technology track: Agriculture is second only to services in Kenya, accounting for 1/3 of GDP.Due to the high penetration rate of mobile phones among farmers and the use of mobile devices to solve agricultural problems, Kenya is the leader in promoting agriculture in Africa.The main companies are: Twiga Foods: Established in 2014 and currently has 17,000 farmers.The main mode is to connect farmers and markets with food distribution companies.At present, the three rounds of financing have reached more than $ 44 million. Investors include IFC, TLcom and Google Launchpad Program.Apollo Agriculture: Farmers can obtain credit and raw materials that pass the health and quality inspection of agricultural products through this platform, and can choose agricultural insurance products. It has now raised $ 9 million.6. Energy Power Cleantech President Kenyatta announced at the end of last year that by 2020, the country’s entire power supply would be supplied by clean energy.At present, 70% of Kenya’s electricity comes from clean energy (wind, solar, hydro, geothermal, etc.), and geothermal power generation capacity ranks 9th in the world.There are 9 million households using distributed solar systems, and this number is rising rapidly.Favorable policies, this track also has a lot of players.The most famous of these is M-kopa, which provides affordable energy products and services to low-income households through a financial lease model (Pay-as-you-go, PAYG), with financing up to $ 162 million.$ 35 down payment, followed by $ 0.43 per day via M-pesa.7. Medical technology track: Kenya’s medical problems are mainly limited medical resources, lack of sufficient professional doctors, poor medical facilities and other common problems in Africa.According to statistics, there are only 6,394 registered active doctors, and less than one doctor per 6355 population.The main companies are: Mydawa: Founded in 2017, online pharmacy, raising $ 8 million.M-tiba: Established in 2015, mobile end medical savings project, financing 2 million US dollars.Through cooperation with Safaricom, there are currently 4 million users and 1,200 medical service providers.Bismart: Established in 2017, it provides mobile micro insurance. It currently has 700 customers and cooperates with 13 insurance product providers.Concluding remarks Open and active economic and financial markets, good infrastructure and huge human capital advantages have made Kenya a leading country in the development of science and technology in East Africa, especially the high penetration rate of mobile Internet, such as fintech, logistics, travel, agricultural technology and other emerging industriesDevelopment provides ample fertile soil and is often compared to Africa’s Silicon Valley.For entrepreneurs who want to go abroad, Kenya’s payment and logistics infrastructure has huge advantages over other African countries, including Nigeria, and is suitable for rapid product verification.However, in terms of the size of the potential market, Kenya’s population base is limited. To seize the population growth dividends of Africa in the next decade, it needs to consider radiating to other markets in East Africa and even expanding to West Africa.For investors, Kenya’s booming venture capital ecosystem has long attracted the attention of European and American capital.Chinese investors entered the market late and need to use comparative advantages to open up the situation in the fierce competition.It should be noted that the Kenyan legal system is relatively close to that in Europe and the United States, and many international standards are directly inherited. It is essential to do adequate legal due diligence.In particular, the impact of the recently promulgated “Data Protection Law” on the Internet entrepreneurial industry requires careful attention.Edit | 杜俊 @ 36 氪 出 图 | Pexels.

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