Kenya has emerged as the top destination for venture capital (VC) funding in Africa for the year ending December 31, 2024, securing $537 million (Sh69.4 billion) in investments from 73 deals. This impressive performance accounts for 26 percent of the continent’s total VC funding of $2.07 billion, outpacing key regional rivals like South Africa, Nigeria, and Egypt.
According to a report by research platforms Future Africa and Weetracker Media, Kenya’s VC investments rose three percent from the previous year, driven largely by the country’s booming climate technology sector. Kenya was the primary beneficiary of Africa’s climate-focused financing, receiving 67 percent of the total capital directed towards clean energy and electric mobility initiatives.
Significant deals fueling Kenya’s record-breaking year included the $150 million (Sh22.7 billion) funding for clean power solutions and BasiGo’s $38 million (Sh4.9 billion) investment to scale its electric bus production. These high-value transactions underscored Kenya’s growing role as a hub for sustainable investment and green energy transition in Africa.
The country’s financial and blockchain sectors also attracted attention, pulling in $63 million (Sh6.5 billion) in funding, with a standout $51 million deal involving M-Kopa, a major digital finance company. This contributed to Kenya’s strong overall performance and diversified investment landscape.
In comparison, Nigeria secured $453 million (Sh58.5 billion) from 77 deals, South Africa attracted $371 million (Sh47.9 billion) from 50 deals, and Egypt brought in $408 million (Sh52.5 billion) from 46 deals. Together, these four markets accounted for 80 percent of the total VC funding raised in Africa for 2024.
Despite Kenya’s dominance in equity-based financing, with 72 percent of its funding in this category, there is growing concern over the rising balance of debt financing in the sector. Startups face potential risks from currency fluctuations and increasing interest rates, which could affect their ability to manage loan repayments.
As Kenya continues to attract global investors and establish itself as Africa’s leading innovation hub, the country’s strong performance signals both opportunities and challenges ahead. With a growing focus on sustainable investment and technological advancement, Kenya is well-positioned to maintain its leadership in the continent’s VC landscape.
