The movie industry is not a failure as such. We actually do have great directors and actors and a good case in point is "Nairobi Half Life" and "something necessary"

The problem with Kenyan Movie industry is Piracy

Most kenyan movies are made with an external audience in mind or donor driven hence tend to be ungrounded..(fake accents and all) Also most locals prefer foreign material as compared to countries like TZ. Riverwood movies on the other hand are underfunded though have high appeal.
Harambee stars..PK can answer that one