Kenya has cemented its position as the leading destination for venture funding in Africa, attracting $638 million (Sh82.3 billion) in 2024. This represents 29 percent of the total $2.2 billion (Sh283.8 billion) raised by African startups across the continent. Despite not producing a new “unicorn” in 2024, Kenya’s success was driven by significant investments in the climate tech sector.
This includes d.light’s $176 million (Sh22.7 billion) securitisation facility and SunCulture’s $27.5 million (Sh3.5 billion) Series B funding round. Nigeria, the continent’s long-time leader in venture funding, slipped to second place, attracting $410 million (Sh52.8 billion) in 2024. This represents 18.6 percent of the total.
Egypt followed closely with $400 million (Sh51.6 billion), while South Africa secured $394 million (Sh50.8 billion), representing 17.9 percent of the continental total. Collectively, these four countries (“The Big Four”) accounted for a staggering 84 percent of all venture funding in Africa in 2024. This demonstrates their continued dominance in the region.
Kenya’s emergence as the leading destination for venture funding reflects its growing reputation as a hub for innovation and entrepreneurship.
Kenya’s venture funding dominance
The country’s “Silicon Savannah” has attracted significant foreign investor interest, driven by a robust ICT sector and a supportive ecosystem.
However, the collapse of some high-profile Kenyan startups has raised concerns about the sustainability of the “Silicon Savannah” narrative. Challenges such as limited early-stage funding, a lack of management expertise, and a gap between academia and industry remain significant hurdles for many Kenyan startups. President William Ruto has recognized the need to address these challenges.
He emphasizes the importance of collaboration between the public and private sectors to foster a more sustainable and inclusive startup ecosystem. During a visit two years ago to Silicon Valley, President Ruto highlighted Kenya’s potential as a hub for innovation. He encouraged American tech giants to invest in the country’s burgeoning tech sector.
Despite the challenges, analysts say the future of Kenya’s tech ecosystem remains bright. With continued support from the government, investors, and the academic community, Kenyan startups have the potential to continue to drive innovation. They can also contribute significantly to the continent’s economic growth.