There’s too much money in Nairobi. That’s one way to explain why some venture capitalists are setting their sights elsewhere. Largely off the back of Mpesa, the hugely successful mobile money-transfer system, the Kenyan capital has gained a reputation for technological innovation—and with it an influx of no-strings (or few-strings) development funding that has crowded …

Five years ago Kenyan entrepreneur Edward Kinyanjui quit his well-paying job as chief operations officer at an international organisation to start his own renewable energy business. He had worked for 12 years, climbed the ladder and become accustomed to a good lifestyle. But Kinyanjui wanted more than “a good salary”, so he pumped his US$100,000 …