Kenya’s Startup Ecosystem Thrives: A Look at the $638 Million Funding Landscape in 2024
In 2024, Kenyan startups made waves in the African startup scene by raising an impressive $638 million in funding, surpassing other startup powerhouses like Nigeria and South Africa. This significant growth in funding has been a trend since 2019, with a particular focus on climate tech initiatives. Despite Kenya accounting for only 4% of the continent’s GDP and total population, it managed to secure over 29% of Africa’s $2.2 billion total startup funding and a whopping 33% of East Africa’s funding.
While the continent experienced a 25% year-on-year decline in total funding from $2.9 billion in 2023 to $2.2 billion in 2024, Kenya’s startup ecosystem demonstrated resilience and continued to attract investments. As of early 2025, the positive trend seems to be continuing, with African startups collectively raising $289 million in January 2025, marking a 240% increase from the previous year. This success can be attributed to major deals like PowerGen’s $50 million renewable energy solutions platform.
Despite the challenges posed by the COVID-19 pandemic, Kenya’s startup ecosystem maintained an influx of investments, particularly in sectors like fintech and agri-tech. The country experienced a 31.25% increase in startup deals between 2021 and 2022, showcasing its growing appeal to investors.
In the past, Nigerian and South African startups dominated the funding landscape, with a focus on fintech. However, Kenya has steadily made progress, with East African companies surpassing the $1 billion mark in 2019. Companies like M-Kopa, d.light, and Sun Culture have collectively raised $1.5 billion since 2019, leveraging Kenya’s abundant renewable resources to develop innovative energy and water solutions that attract significant funding from impact investors and finance institutions.
Climate tech startups lead the funding charts in Kenya, followed closely by retail chain supply platforms. E-mobility companies like BasiGo have also contributed to the country’s funding increase, thanks to initiatives like the draft e-mobility policy introduced in April 2024 to accelerate local manufacturing and assembly of electric vehicles.
Government policies, such as the Startup Act 2022 and initiatives to establish innovation hubs, have also played a significant role in shaping Kenya’s startup funding landscape. Nairobi, Kenya’s capital, has earned the title of Africa’s “Silicon Savannah,” attracting talent and investors from around the world and positioning East Africa as a prominent region for venture capital.
With a network of angel investors and venture capitalists showing confidence in the startup scene, Kenya’s dominance in Africa’s startup funding landscape is no accident. It is the result of deliberate government initiatives, a young and tech-savvy population, a thriving innovative ecosystem, and a strong entrepreneurial spirit that continue to drive the country’s success in the startup world.
