Kenya continues to solidify its reputation as Africa’s leading start-up ecosystem, securing the largest share of venture capital (VC) investment on the continent in 2024. According to Africa: The Big Deal, start-ups across Africa raised $2.2 billion (approximately Ksh.284.6 billion) through equity, debt, and grants, with Kenya accounting for $638 million (Ksh.82.5 billion) 29% of the total and 88% of East Africa’s share.
The ‘Big Four’ ecosystems Kenya, Egypt, South Africa, and Nigeria attracted 84% of the total funding in 2024, but Kenya led the pack. Large investments in climate tech ventures like BasiGo, which raised over Ksh.5.8 billion for electric vehicles, and SunCulture, a solar-powered irrigation solutions provider, which secured over Ksh.3.6 billion, drove Kenya’s success.
Regionally, East Africa emerged as a funding powerhouse for the second consecutive year, attracting $725 million. However, the continent experienced a general funding decline. Africa’s total VC funding in 2024 dropped 25% compared to 2023, when $2.9 billion was raised. East Africa’s numbers reflected this trend with an 18% year-on-year (YoY) decline.
The decrease was part of a broader “funding winter” caused by rising inflation, unfavorable interest rates, and a shift by foreign investors away from emerging markets. These factors led to smaller deal sizes and fewer investments.
Despite the dip, 188 African ventures raised at least $1 million in 2024, only 10% fewer than in 2023. The year also saw 22 publicized exits, up from 20 in 2023, and two fintech start-ups Nigeria’s Moniepoint and South Africa’s Tyme achieved unicorn status.
Historically, African start-ups had enjoyed a funding boom, with $4.3 billion raised in 2021 and $4.6 billion in 2022. However, 2023 marked a turning point, with total funding dropping to $2.9 billion.
Kenya’s performance in 2024, though lower than its 2023 haul of $800 million, underscores its resilience and leadership in Africa’s start-up ecosystem, particularly in sectors like climate tech and agri-tech.
