STARTUP

ACCELERATOR
CODE OF CONDUCT
Guide for startups before joining
an accelerator program in kenya
 About Nairobi County Digital Economy and
Startups
Nairobi county digital economy and startup sector established under executive order 1 of 2022 and charged
with the mandate of supporting the capital’s innovation ecosystem through outcome-based programs
underpinned on County integrated development plans 2023-2027.

The executive order spells out the functions of digital economy and startups sub sector :

1. Coordinate Nairobi Startup stakeholder engagement

2. Establish Nairobi as Africa startup market launchpad

3. Coordinate Nairobi Startup international exposure to global innovation forums

4. Establishment of sub county/ward based incubation programs

5. Establishment of startup seed funding and grant mechanism

6. Enabling policy intervention for Nairobi startup ecosystem

2 STARTUP ACCELERATOR CODE OF CONDUCT | GUIDE FOR STARTUPS BEFORE JOINING AN ACCELERATOR PROGRAM IN KENYA
Introduction
A startup accelerator is a formal organization or a formal project run by an incubator, private company,
academic institution and government bodies among others that helps startups to accelerate growth, rapidly
acquire entrepreneurial skills , access seed funding among other activities of increasing startups going
concern through a highly structured and competitive mentoring programme.

The general structure of startup accelerator take the form of ; an open application process focused on
high-performing teams, competitive selection process, highly structured mentoring package that involves
local and international mentors, limited to approximately 3 months after which the startups become alumni
, a strong community and pre-seed investment in terms of a convertible loan or equity investment among
other kinds of reward.

Kenya has two national associations that bring together accelerators and incubators ; Countywide Innovation
Hubs is an association of hubs located outside Nairobi whose main objective is to promote activities and
programs of the member hubs and Supporting their vision of testing and building impactful sustainable
businesses in rural and Second tire towns Of Kenya and have a membership of 21 members spread across
15 Kenyan Counties.

The Association of Startup and SMEs Enablers of Kenya (ASSEK) is an association that brings together and
represents the interests of organizations supporting the development and growth of startups and SMEs for
maximum impact of such activities with membership of over 30 incubators .

There has been a growing disgruntling trend by startups joining acceleration programs in Kenya indicating
being exploited in one way or another such as Intellectual property theft, delayed or non disbursement of
seed funding or other forms of rewards and lack of or exploitative engagement framework.

The startup accelerator code of conduct is a general guide startups can use to evaluate the veracity of a
potential accelerator program before joining.

Gauging your readiness before joining an accelerator program

Factors startups must consider before applying to an accelerator as a readiness assessment

• Clear and concise product / service / business model

• Strong team with the skills and experience to execute vision

• Traction eg acquiring customers or generating revenue

STARTUP ACCELERATOR CODE OF CONDUCT | GUIDE FOR STARTUPS BEFORE JOINING AN ACCELERATOR PROGRAM IN KENYA 3
 What startups should look out for from a
potential accelerator
Startups must consider the following 5 key factors before making final decision to joining an accelerator

1. Revenue Model

2. Strategic focus of a startup accelerator

3. Investment and other potential monetary and practical rewards

4. Mentoring package

5. Community, alumni services and train the trainer programme

1. Revenue Model
Startup accelerators follow various business models to provide long-term sustainability hence startups must
be clear on how the potential accelerator’s operations are financed and charges that will accrue to the startup
if they were to join the program.

Table 1: Typical accelerator revenue streams

Management fee The standard practice for startup accelerators is to manage

a seed fund and invest these funds into the selected startups
ensuring to charge fund investors and or a portion of exit profits.

Participation fees Some accelerators charge startups a fee for entering their
acceleration programme. The fee is usually paid out of the
investment. If the investment is not provided, a fee can be
subsidized by the government or sponsors. A community
membership can also be charged.

Sponsors Some accelerators have sponsors to operate. It can be one

big corporate sponsor for corporate accelerators, or several
sponsors from the private or public sector.

Startups need to request full disclosure of any other fees that may accrue to them such as office space
charges, legal services, and marketing support among others. Similarly startups must be wary of accelerators
that demand an unreasonably high equity stake in return for their services.

4 STARTUP ACCELERATOR CODE OF CONDUCT | GUIDE FOR STARTUPS BEFORE JOINING AN ACCELERATOR PROGRAM IN KENYA
2. Strategic Focus
There is a growing global trend of accelerators becoming specialized and focused on certain industries,
segments or growth stages. Attracting specialized mentors, investors and consultants, combined with
providing an adjusted acceleration program can bring additional value to the startup ecosystem. It is prudent
for startups to join accelerators that are a strategic fit in terms of focus (Table 2) as they present a higher
probability of successful support.

Startups should look out for accelerators that are more practical and less theory as new product development
and testing support as well as scaling existing product lines.

Table 2: Accelerator strategic focus

1 General accelerator (focused on several industries)

2 Vertical accelerator (focused on one industry)
3 Niche accelerators (targeting a small segment of an industry)
4 Corporate accelerator
5 Government-backed accelerator

3. Investment and Rewards

Apart from mentoring and coaching, investment and rewards financial or otherwise remain a big attraction
for startups in joining an acceleration program.

The Kenyan ecosystem accelerators feature a mix of such perks from financial investments, free facilities,
equipment, discounted subscription, free PR activities among others

The investment can be either private, public, or a mixture of both. Private money is usually provided by
business angels, VC funds, banks, corporations and family offices among others.

Table 3: Typical Investment offered by accelerator programs

Management fee The standard practice for startup accelerators is to manage a seed fund and invest
these funds into the selected startups ensuring to charge fund investors and or a
portion of exit profits.

Participation fees Some accelerators charge startups a fee for entering their acceleration programme.
The fee is usually paid out of the investment. If the investment is not provided, a
fee can be subsidized by the government or sponsors. A community membership
can also be charged.

Sponsors Some accelerators have sponsors to operate. It can be one big corporate sponsor
for corporate accelerators, or several sponsors from the private or public sector.

STARTUP ACCELERATOR CODE OF CONDUCT | GUIDE FOR STARTUPS BEFORE JOINING AN ACCELERATOR PROGRAM IN KENYA 5
 It’s absolutely recommended to get an experienced legal firm to help you prepare all the legal documents in
case of an equity investment or a convertible note.

Similarly startups must ensure that the accelerator program has a clear policy for protecting your intellectual
property. This includes your company’s name, logo, and any proprietary technology.

Nairobi City County has partnered with experienced legal firms that can support startups in their investment
journey as well as other legal support on IP and contract management among others.

Table 4 : Law firms supporting Nairobi county on Startup Intellectual property and Dealmaking
Support

Law Firm Contact person Email

Harriet Odhiambo Associate Advocates Nancy Harriet Odhiambo hoaa.legal@gmail.com

Moronge L. Obonyo, Advocate Moronge L. Obonyo mlobonyo@gmail.com,

MorongeAdvocate@gmail.com

Teddy & Company Advocates Teddy Enos Ochieng teddy@ochiengteddy.co.ke

Transnational Legal Ltd Dr Jeremmy Okonjo j.okonjo@transnational-legal.com

PhD Law (Kent) LLM (UCL), f.okonjo@transnational-legal.com

LLM, LLB (UoN), PGDip (KSL)
fionakogera@hotmail.com
Attorney & Advocate of the
jokonjo@jnoadvocates.co.ke
High Court of Kenya

Associate Fellow of the UK

Higher Education Academy

Sisule & Associates, LLP Wangechi Wahome wangechi@anzavillage.africa

wwahome@sisulelaw.com

sisule@sisulelaw.com

schesanai@sisulelaw.com

CM Advocates Ivy Nyambura Mburu dgichuru@cmadvocates.com

vrotich@cmadvocates.com

cmaina@cmadvocates.com

imburu@cmadvocates.com

Mwale Law Advocates LLP Mwale Law Dominic Mwale dominic@mwalelegal.co.ke

Advocates LLP

TripleOKlaw Frank Raudo fraudo@tripleoklaw.com

Brain Muindi bmuindi@tripleoklaw.com

6 STARTUP ACCELERATOR CODE OF CONDUCT | GUIDE FOR STARTUPS BEFORE JOINING AN ACCELERATOR PROGRAM IN KENYA
Law Firm Contact person Email
OLM Law Advocates Ken Likoko klikoko@olmllp.com
Ndikimi & Company Advocates Andrew Ndikimi ndikimi@ndikimi.com

Ong’anya Ombo Advocates LLP Ombo Malumbe om@onganyaombo.com

MZIZI Africa Margaret Odhiambo modhiambo@mzizi-africa.com

Kenya is a member state of World Intellectual Property Organization (WIPO) and has four key intellectual
property protection bodies

Table 5 : Intellectual property protection bodies in Kenya

Organization About Website

The Kenya Industrial Kenya Industrial Property Institute (KIPI) is a https://www.kipi.go.ke/index.php/
Property Institute (KIPI) government parastatal under the Ministry of about
Investments, Trade and Industry. The Institute
was established on 2nd May 2002 upon the
coming into force of the Industrial Property Act KIPI Approved Patent Agent
2001. Previously the Institute existed as Kenya
{https://www.kipi.go.ke/images/
Industrial Property Office (KIPO), which was
docs/patent_agents_updated_16_
established in February 1990 after enactment
of the Industrial Property Act, CAP 509 of the Dec2020.pdf }
Laws of Kenya.

The Kenya Copyright The Kenya Copyright Board (KECOBO) is a https://copyright.go.ke/about-us/

Board (KECOBO) State Corporation under the Ministry of Youth our-organization
Affairs, Sports and the Arts - State Department
for Youth Affairs and the Arts. It was
established by section 3 of the Copyright Act
2001 and mandated with the administration
and enforcement of copyright and related
rights. The Board is responsible for organizing
legislation on copyright and related rights;
conducting training programmes on copyright
and related rights; enlightening and informing
the public on matters related to copyright;
licensing and supervising the activities
of collective management societies; and
maintaining an effective databank on authors
and their works.

STARTUP ACCELERATOR CODE OF CONDUCT | GUIDE FOR STARTUPS BEFORE JOINING AN ACCELERATOR PROGRAM IN KENYA 7
 Organization About Website
Kenya Plant Health Kenya Plant Health Inspectorate Service https://www.kephis.org/
Inspectorate Services (KEPHIS) is the government parastatal whose
(KEPHIS) responsibility is to assure the quality of
agricultural inputs and produce to prevent
adverse impact on the economy, the
environment and human health.

KEPHIS was formed by Kenya Plant Health

Inspectorate Service Act 2012 and its mission
is to provide a science-based regulatory
service by assuring plant health, quality of
agricultural inputs and produce for food
security, globally competitive agriculture, and
sustainable development.

The Anti- Counterfeit The Anti-Counterfeit Act gives the Authority https://www.aca.go.ke/
Agency (ACA) the mandate to:

• Enlighten and inform the public on matters

relating to counterfeiting;

• Combat counterfeiting, trade and other

dealings in counterfeit goods;

• Devise and promote training programs to

combat counterfeiting;

• Co-ordinate with national, regional or

international organizations involved in
combating counterfeiting;

• Carry out any other functions prescribed for

it under any of the provisions of this Act or
under any other written law; and

• Perform any other duty that may directly or

indirectly contribute to the attainment of the
foregoing.

4. Mentoring package
Mentoring is a critical component for an accelerator program and moreso quality and not quantity mentorship
which is correlated to not only a successful acceleration program but the very survival of startups

Startup should look out for accelerator programs that features the following mentor types

1. Experienced and successful entrepreneurs

2. Academic specialized on the subject matter

8 STARTUP ACCELERATOR CODE OF CONDUCT | GUIDE FOR STARTUPS BEFORE JOINING AN ACCELERATOR PROGRAM IN KENYA
3. Experienced subject matter consultants and advisors

4. Corporate managers

5. Experienced International mentors

6. Peer to peer alumni

5. Community, alumni services and train the trainer programme

A very important part of every startup accelerator is its community. The stronger the community, the stronger
the accelerator.

Every accelerator starts with a small community that can grow big throughout the years and then maybe
even turn into an international entrepreneurial community, which has really big value. Thus it is important for
startups to find out the type of community that an accelerator program offers through reading reviews from
other startups as well as talking to people who have participated in the program in the past among others

STARTUP ACCELERATOR CODE OF CONDUCT | GUIDE FOR STARTUPS BEFORE JOINING AN ACCELERATOR PROGRAM IN KENYA 9
Reach out to Nairobi City County for support:

VICTOR OTIENO
County Chief Officer Digital Economy and Startups

Email: vagolla@nairobi.go.ke | golavick@gmail.com

Telephone: +254 723 982 528