Kenyan Start-Ups Raise Sh91.4 Billion in Venture Capital Funding, Defying Global Decline: AVCA Report
In spite of a global decline in venture capital (VC) funding and the closure of tech companies, Kenyan start-ups received an impressive sum of Sh91.4 billion ($676 million) from VC funds in 2022, according to a report by African Private Equity and Venture Capital Association (AVCA) titled “Venture Capital in Africa”. This represents 13% of the total $5.2 billion raised in venture capital in Africa over the year. The report also shows that Kenya accounted for 102 out of 786 deals in the continent.
Kenya’s VC funding value ranked third after Nigeria and US-headquartered start-ups, which received $780 million and $884 million respectively. This puts Kenya ahead of Egypt ($676 million), South Africa ($520 million), Ghana ($208 million), and Algeria ($156 million). In terms of the number of deals, Kenya was ranked fourth behind Nigeria, Egypt, and South Africa.
This significant funding reflects the growing confidence in Kenya’s start-up ecosystem, making it an attractive destination for investors. As the country continues to create innovative and impactful start-ups, it’s likely that we’ll see even more investment flowing in the future.