Kenya has emerged as Africa’s top destination for startup funding, raising $437 million (Sh56.5 billion) so far this year, according to data from Africa: The Big Deal.
This figure represents 31% of all funds raised across the continent, underscoring Kenya’s growing appeal to global investors.
The country’s strategic location, fast internet speeds, and favorable policies have made it a preferred hub for startups, helping it surpass Egypt, which raised $373 million (Sh48.3 billion) in the same period.
Together, Kenya and Egypt account for 58% of the total startup investments in Africa.
“This marks the highest share of funding for both countries since 2019,” the report highlighted.
Meanwhile, Nigeria, which once led in startup funding, has seen a notable decline, raising $218 million (Sh28.2 billion), representing 15% of the continent’s total funding.
This is slightly up from last year’s 14% but significantly lower than its historical average of 35% between 2019 and 2022.
South Africa has also recorded its lowest startup funding performance since 2019, securing just $125 million (Sh17.2 billion), or 9% of Africa’s total funding in 2024 so far.
The remaining 18% of funds raised is spread across 23 African markets, with countries like Tanzania, Ghana, Morocco, Uganda, and Rwanda attracting significant investments.
Notable deals include Sh6.5 billion raised by Spiro in Benin, Sh5.2 billion by Nala in Tanzania, and Sh3.9 billion by Fido in Ghana.
