Kenyan startups raised $638 million in 2024, surpassing startup powerhouses like Nigeria and South Africa.
Since 2019, Kenya has seen significant growth in funding, particularly directed to climate tech initiatives. Although the country accounts for only 4% of the continent’s Gross Domestic Product (GDP) and total population, it raised over 29% of Africa’s $2.2 billion total startup funding and 33% of East Africa’s funding.
Despite a 25% year-on-year decline in total funding across the continent, from $2.9 billion in 2023 to $2.2 billion in 2024, Kenya’s ecosystem demonstrated resilience.
As of early 2025, the positive trend appears to be continuing. In January 2025, African startups have collectively raised $289 million, a 240% increase from $85 million in January 2024, thanks to Kenya’s significant role with major deals like PowerGen’s $50 million renewable energy solutions platform.
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The COVID-19 pandemic posed challenges for many in the startup scene, but Kenya’s ecosystem maintained an influx of investments (31%), particularly in sectors like fintech and agri-tech. Kenya experienced a 31.25% increase in startup deals between 2021 and 2022.
Nigerian and South African startups previously dominated the funding landscape, with fintech startups receiving most of this funding. However, Kenya has steadily made progress, with East African companies surpassing the $1 billion mark in 2019.
Companies like M-Kopa which received $51 million from DFC in May 2024, d.light which raised $176 million in July 2024, and Sun Culture which also secured $12 million in April 2024, have collectively raised $1.5 billion since 2019, accounting for nearly 44% of the country’s total funding estimate. These companies have leveraged Kenya’s abundant renewable resources to develop innovative energy and water solutions, attracting significant funding from impact investors and finance institutions.
“These climate-tech startups are supported by an enabling business environment built on 90% renewable electricity grid from sources like geothermal, hydro, wind, and solar power,” Andreata Muforo, partner at TLCom Capital told Techpoint Africa.
“It is encouraging to see a promising stabilisation or slight increase in startup funding to Africa, given the slight ‘VC Winter’ the ecosystem experienced over the last 18-24 months globally,” she adds.
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While these climate tech startups top the funding charts, retail chain supply platforms like Twiga Foods, Wasoko, and Copia Global are not far behind, bringing $400 million to the supply belt since 2019, despite Copia shutting down in May 2024.
E-mobility companies like BasiGo contributed to the country’s funding increase. In an email to Techpoint Africa, Jit Bhattarcharya, CEO and Co-founder of BasiGo, explains that what sets the country apart is the removal of subsidies on transport fuel, prompting a hike in the price of fuel and fares.
“Electric vehicles are now able to go head-to-head with traditional combustion engine vehicles because these vehicles are powered by Kenya’s renewable energy grid. The impact is much greater than anywhere in the world,” he says.
In April 2024, Kenya introduced a draft e-mobilty policy aiming to accelerate local manufacturing and assembly of electric vehicles (EVs) by offering incentives to producers and assemblers. Beyond vehicle production, the policy encourages local battery manufacturing, recycling, and repurposing efforts.
With this and more projects and initiatives, such as mainstreaming EVs and its exemption from purchase tax, the Startup Act 2022, and the establishment of innovation hubs, government policies are also impacting the startup funding landscape.
Kenya’s capital, Nairobi, has established itself as Africa’s “Silicon Savannah,” attracting talent and investors from across the globe. This performance has positioned East Africa as a prominent region for venture capital.
Notably, Kenya has attracted a network of angel investors and venture capitalists, showing confidence in the startup scene. In 2024, 134 investors participated in equity and debt funding rounds in Kenya.
Kenya’s dominance in Africa’s startup funding landscape is no accident. It is the result of deliberate government initiatives, a young, tech-savvy population, a thriving innovative ecosystem, and an entrepreneurial push.
