Accessing venture capital: assessing the legal and regulatory framework for the growth of the venture capital industry in Kenya
Abstract
Small and Medium Enterprises in Kenya have been variously reported to suffer lack of
financial resources for growth and sustainability, especially because debt financing is
generally expensive. Venture capital has had a significant impact on Small and Medium
Enterprises in the developed countries. It is an important alternative financing for small
scale enterprises yearning to grow. Studies have shown that enterprises backed by venture
capital are confirmed as key drivers of growth and sustainable development. This paper
sought to assess whether the legal and regulatory framework for venture capital in Kenya
was adequate to foster economic development by doing a comparative review of the legal
and regulatory framework supporting venture capital in other jurisdictions with best
practices; and to further make recommendations for the reform of the venture capital
industry in Kenya.
The preliminary results of the study revealed the challenges to the growth of the venture
capital sector. The findings however responded positively to the research question of
whether policy directions and the legal and regulatory environment were hindering or
stifling the growth and development of venture capital companies in Kenya. The principal
conclusion was that the current legal and regulatory framework is neither sufficient nor
adequate to foster its growth.
Finally, findings from this thesis would contribute to the venture capital industry
academically
Citation
Master of laws in public finance and financial services lawPublisher
University of Nairobi