In recent years, Kenya has shown remarkable resilience and progress in attracting start-up funding, aligning closely with the overall funding dynamics across the African continent.
According to a report by Africa: The Big Deal, a notable trend emerged when examining Kenya’s standing, relative to its ‘Big Four’ counterparts, (Nigeria, South Africa, and Egypt), which collectively attracted over 80% of Africa’s start-up funding since 2019. Despite these competitive peers, Kenya’s position is both remarkable and promising, as the country’s thriving startup ecosystem has in recent times dominated Africa’s investment landscape.
Kenyan startups raised the most funding of any African country from January to October in 2024. This surge in capital inflow is a continuation of an impressive trend that began in 2023. For two consecutive years, Kenya has secured the leading spot in terms of start-up funding on the continent, attracting 27% of all funds in 2023 and 31% in 2024 year-to-date. Recall that in January this year, the East African country reportedly surpassed Nigeria as the primary recipient of startup funding in 2023, securing an impressive $800 million.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The growth in funding for Kenyan startups over the past year has reportedly been driven by debt funding to startups in the energy industries while large deals also skew the data. For example, only two startups in the country, M-Kopa and Spiro, collectively raised $101 million in debt funding.
This is an impressive feat for a country that represents approximately 4% of Africa’s population and GDP, ranking seventh in nominal GDP. Since 2019, Kenya has consistently held either the first or second position in start-up funding, and its 31% share this year marks, a record high for the period.
A closer look at Kenyan start-ups raising substantial capital further highlights this trend. The number of ventures securing at least $1 million has maintained a steady 20% share over recent years, and in 2023 and 2024 year-to-date, Kenya has ranked second in this category-following Nigeria in 2023 and Egypt in 2024. Kenya’s performance is particularly impressive given the economic climate of recent years.
During the “funding heatwave” from mid-2021 to mid-2022, Kenya attracted 18% of the $6.3 billion raised across the African continent, ranking second to Nigeria, albeit at a significant gap, as Nigerian start-ups secured nearly twice the funding. However, as the global funding landscape shifted into a “funding winter” from mid-2022 onward, Kenya emerged as the leader, capturing 26% of the funding, outpacing Nigeria by 1.5 times and taking the top spot, with Egypt following closely.
In terms of the number of ventures raising $1 million or more, Kenya’s trajectory has been similarly positive. It rose from third place (18%) during the funding heatwave to second (20%) during the recent period, while Nigeria held onto the lead. This underscores Kenya’s resilience and adaptability in a challenging funding environment, solidifying its role as a key player in Africa’s tech ecosystem.