Sustainability Communication Role in Attracting Funding for Startups: A Case of Agra Kenya

Abstract

Sustainability communication has emerged as a critical corporate communication strategy for organization across the globe, particularly in influencing stakeholder perceptions and securing funding. This study explored how startups in Kenya can leverage sustainability communication to attract investment and funding from stakeholders, using the Alliance for a Green Revolution in Africa (AGRA Kenya) as a case study due to its established sustainability communication practices and success in funding Agri-tech startups. The study was guided by three research objectives: 1) to identify the key sustainability communication strategies employed by AGRA to attract funding from stakeholders, 2) to examine how AGRA tailors these strategies to align with stakeholder investment priorities, and 3) to assess the perceived effectiveness of AGRA’s sustainability communication in influencing stakeholder investment decisions. The study was informed by Stakeholder Theory, which emphasizes aligning organizational communication with diverse stakeholder interests to enhance trust and engagement. A review of the literature revealed a gap in understanding how sustainability communication can be leveraged by startups in developing countries like Kenya to secure funding, despite its recognized role in corporate settings in global North countries. The study adopted a qualitative research methodology, utilizing an intrinsic case study design to explore AGRA’s practices. Data were collected through semi-structured online interviews with eleven purposively selected AGRA employees from the communication, marketing, grants, and fundraising departments. Thematic analysis approach was done using MAXQDA, a qualitative software, and Otter.ai, an audio transcriber tool which converted the audio interviews to scripts. Data saturation was reached on the ninth participant. Key findings revealed that: 1) AGRA employs multi-channel storytelling and evidence-based, policy-aligned communication to engage stakeholders effectively, building trust and credibility; 2) AGRA tailors its messaging to align with stakeholder priorities, such as environmental impact and economic scalability, while leveraging high-profile platforms to amplify its sustainability narratives; and 3) AGRA’s communication is perceived as effective due to its stakeholder-centric feedback mechanisms and data-driven transparency, which enhance stakeholder trust and investment decisions. The study concluded that AGRA’s sustainability communication strategies significantly influence funding outcomes, offering valuable lessons for startups. Recommendations include: 1) developing a formal sustainability communication framework for all internal staff, 2) incorporating local languages and culturally tailored content to broaden stakeholder reach, and 3) providing regular training for staff engaging with stakeholders to enhance communication effectiveness. This study contributes to the literature by providing a developing nation’s perspective on sustainability communication as a tool for startup funding, addressing a critical gap in corporate communication research.