Kenya attracted $638 million (Sh82.46 billion) in venture capital funding in 2024 topping the African continent for a second time in a row.
Kenya singularly made up 88 percent of the total amount raised in the East African region and 29 per cent of the of the overall amount raised in Africa.
This means that for every three dollars in VC funding raised in Africa, one dollar came to Kenya and the rest went to the other states.
However, despite the country dominating both the East Africa region and the continent, the total venture capital funds to E.A. declined by 18 per cent to $725 million (Sh93.71 billion).
Data by Africa: The Big Deal, a platform that tracks, analyses, and reports on startup funding activity across the continent, shows that three firms drove up the numbers for Kenya.
“Large deals in the climate tech space in particular—think d.light, SunCulture, or Basigo—boosted the numbers,” the report reads.
Last year M-Kopa emerged as Kenya’s top-funded start-up. East Africa attracted the most funding for the second year in a row, raising $725 million (Sh93.71 billion) in total.
It was followed by Western Africa with $587 million (Sh75.93 billion), Northern Africa $478 million (Sh61.83 billion), and Southern Africa raised $397 million (Sh51.35 billion).
Kenya was the primary driver of this region’s success, followed by Tanzania with $53 million (Sh6.86 billion), ranking seventh, and Uganda raised $19 million (Sh2.46 billion) and ranked 11th.
“There was also some level of activity in Rwanda, Sudan and Ethiopia,” the report read in part.
Countries with already established startup ecosystems continued to dominate the list, with Kenya, Nigeria, Egypt and South Africa—commonly referred to as ‘the Big’Four’—attracting 84 percent of all the startup funding in Africa in 2024.
Western Africa claimed the second spot in Africa’s venture capital (VC) funding landscape in 2024, climbing from fourth place in 2023.
The region demonstrated resilience, recording only a slight year-on-year decline in funding.
Nigeria led the charge, securing just over $400 million, making it the most significant contributor to the region’s $587 million (Sh75.93 billion) total.
Western Africa stands out as the continent’s most balanced funding region, with Nigeria accounting for 70 percent of the total—a relatively equitable share compared to other regions dominated by single countries.
Northern Africa saw a steep 35 per cent drop in VC funding in 2024, with the region raising $478 million (Sh61.83billion) or 22 per cent of the continent’s total.
The decline was primarily driven by Egypt, where funding fell 37 per cent year-onyear. Egypt continued to dominate the region, contributing 84 per cent of Northern Africa’s total funding.
Southern Africa experienced a similar trend, with VC investments falling 36 per cent to $397 million (Sh51.35 billion), representing 18 per cent of Africa’s total.
South Africa remained the region’s funding hub, attracting virtually all of the investment ( 99.4 per cent), though it saw a 34 per cent year-on-year decline.
Central Africa recorded the lowest funding levels in 2024, raising
just $5 million (Sh646.75 million).
