Kenya Emerges as The Leading Destination For Startup Funding in Africa
Despite a global funding drought for emerging companies, Kenya has defied the odds by recording a 17 percent increase in new startup investments, surpassing Nigeria and Egypt to become the continent’s leading destination for startup financing.
According to data from startup research organization Disrupt Africa, in 2023, 62 Kenyan startups raised an estimated $673.78 million from both local and international investors. This marked an increase from the $574.8 million raised in 2022, contrasting with the decline in funding seen across the rest of the continent.
Nigeria and Egypt, long-standing leaders in Africa’s startup funding arena, experienced a decline in 2023. This downturn was attributed to a global slowdown in investments, stemming from a combination of macroeconomic challenges worldwide.
Unlike elsewhere on the continent, Kenya’s total funding is up. The East African country had an overall positive year in 2023, with its total amount of funding actually rising on 2022 levels, although the number of start-ups to secure funding was down like most other destinations.
In Kenya, most of the funding raised last year went to energy start-ups, with off-grid solar pay-as-you-go firms M-Kopa and Sun King raising $465 million, or 69 percent of the start-up funding received.
