Kenyan startups secured Sh82.3 billion ($638 million) in funding in 2024, propelling the country to the top position in Africa’s startup funding rankings.

This highlights Kenya’s growing dominance in the continent’s tech and innovation space.

Driving Factors
Kenya’s strong performance was driven by significant deals in the climate tech sector, with companies such as d.light, SunCulture, and BasiGo attracting substantial investments.

These deals contributed to 88% of the total funding raised in East Africa and nearly 29% of all funds raised across the continent.

“First off, East Africa attracted the most funding for the second year in a row: $725m in total (-18% YoY), i.e. 1 in 3 dollars raised on the continent in 2024,” noted Africa: The Big Deal.

Regional Breakdown
Nigeria came second, raising Sh52.9 billion ($410 million), followed by Egypt with Sh51.6 billion ($400 million) and South Africa at Sh51 billion ($394 million).

In West Africa, Ghana and Benin trailed Nigeria with Sh8.8 billion ($68 million) and Sh6.5 billion ($50 million), respectively.

Central Africa lagged significantly, with total funding at just Sh687 million ($5 million), a drop of over 10 times compared to 2023.

Why Kenya Leads
Kenya’s strategic location, pro-investor policies, and advanced internet infrastructure have positioned it as a hub for tech firms in East Africa.

These factors have made the country an attractive destination for global investors seeking opportunities in scalable solutions, particularly in climate tech and financial technology.

Future Outlook
While Kenya’s position as Africa’s funding leader underscores its robust startup ecosystem, challenges such as regulatory hurdles and market access remain.

Continued government and private sector collaboration will be crucial to sustaining this growth trajectory.

Kenya’s performance reaffirms its status as a regional leader in innovation, driving transformative solutions for Africa’s unique challenges.