Kenya has secured an enviable position among the most competitive innovation and investment destinations in Africa. The country’s attractiveness has seen Big-Tech companies troop in to set shop in the capital, Nairobi, effectively giving it a thumbs up among the greats.
Data shows that startups in the country raised nearly one billion dollars in the first half of 2022. To be specific, estimates place this figure at $820 million, nearly double what was raised in a similar period last year.
According to the Big Deal, a custodian of African startup database, Kenya the growth in Venture Capital funding this year represents a 422% growth compared to a similar period last year when funding totalled $157 million. This data is from the analysis of 76 deals signed by Kenyan startups.
The report further says that Kenya’s startups raise a total of $411 million for the entire of 2021, although another study had placed this figure at $571 million. From both surveys, Kenya was standing at number four in the terms of total funds raised.
Data accounted for in this report is obtained from deals that have been made public. It shows that the county is currently second after Nigeria, which has raised $864 million in VC funding from 160 deals. Egypt and South Africa take the third and fourth positions respectively. Egyptian startups have raised $538 million from 71 deals while those in South Africa have raised $392 from 53 deals, as reported by online publication TechCrunch.
The rise in this funding is fueled by huge deals that have over $100 million. Among them is the $260 million series D funding raised by solar company Sun King, and one by eCommerce platform Wasoko, which raised $125 million in series B funding.
This survey paints a promising picture of African startups, even as economies across the world recover from the effects of the Covid-19 pandemic.