Kenyan Startups Raise Sh126bn in 2025, Lead Africa’s Tech Funding

While Kenya led the continent in total funds raised, other markets also posted notable results: South Africa came in second with about $600 million raised, representing 19 % of total African funding, the largest share from equity deals on the continent. Egypt and Nigeria, traditionally among the top three tech ecosystems, trailed behind Kenya’s total funding in 2025, reflecting shifts in investor priorities and geographic funding distribution.

Smaller markets such as Senegal (Sh20.2 billion), Benin (Sh12.9 billion), Rwanda (Sh3.2 billion) and Mali (Sh2.3 billion) also attracted capital, indicating broader regional diversification in startup investment. Kenya’s robust performance this year builds on foundation gains from recent years.

In 2024, Kenyan startups raised around $638 million (roughly Sh82.5 billion), accounting for nearly 29 % of Africa’s total funding despite a broad slowdown in continental investment, a reflection of Kenya’s resilience and depth in tech innovation. However, industry analysts caution that equity funding remains concentrated among late stage deals and larger ventures, suggesting that smaller seed stage startups may still face funding gaps.

The drop in the number of large deals in Kenya in 2025, despite the record total, underscores the need to strengthen the pipeline for early stage ventures and support a broader range of innovators. Kenya’s outsized share of startup funding in 2025 signals its growing role as a continental innovation hub, attracting capital not only to fintech but increasingly to energy, climate tech, mobility and digital services.

This diversified appeal strengthens Nairobi’s position as a gateway for African innovation, drawing investors seeking both scalable startups and impact oriented businesses that align with global sustainability trends. As Kenya continues to draw nearly one third of all African startup capital, the challenge ahead lies in building inclusive, early stage funding ecosystems that uplift emerging founders and widen the base of entrepreneurship across sectors.