Kenya Tops African Startup Funding in 2024 as Nigerian Startups Secure $400
Kenya cemented its position as the leader in Africa’s startup funding landscape in 2024. It raised an impressive $638 million, according to Africa: The Big Deal’s annual funding report. This marked 88% of East Africa’s total funding and was driven by significant investments in climate tech startups like and SunCulture. Meanwhile, Nigerian startups followed closely, raising over $400 million, maintaining a strong presence despite Kenya’s dominance.
Nigerian funding in 2024 mirrored its 2023 performance. It was bolstered by two standout deals: Moove’s $110 million, and Moniepoint’s $110 million Series C round. East Africa collectively raised $725 million (33% of Africa’s total). West Africa followed with $587 million, thanks to Nigeria’s contributions and emerging players from Ghana, Benin, Côte d’Ivoire, and Senegal.
Africa’s total startup funding for 2024 reached $2.2 billion, with the Big Four—Kenya, Nigeria, Egypt, and South Africa—accounting for a massive 84%. However, North and Southern Africa saw declines, with Egypt and South Africa experiencing year-over-year drops of 37% and 34%, respectively.
Emerging markets like Morocco, Ghana, and Benin are set to drive Africa’s startup growth in 2025 and beyond as the ecosystem evolves.
Kenya’s Financial Strategy for 2024/2025
Kenya’s fiscal approach for 2024/2025 reflects its commitment to economic recovery, social welfare, and sustainable growth. Kenya has a projected budget of Ksh 4.0 trillion (approximately $30 billion). Kenya has increased its spending by 3.1% from the previous fiscal year.
Key Budget Highlights:
- Revenue Projections
Total revenue, including grants, is expected to rise by 15.2% to Ksh 3.4 trillion, driven by an 18.5% increase in ordinary revenue, reaching Ksh 2.9 trillion. - Social Programs
- Education: With $5.1 billion allocated (27.5% of the budget), the government prioritizes education through school feeding programs and teacher recruitment.
- Healthcare: The government allocates approximately $984 million to health programs under the Universal Health Coverage initiative.
- Agriculture: It earmarks $423 million to enhance food and nutrition security through agricultural support programs.
- Infrastructure and ICT Development
- The government is dedicating $1.49 billion to infrastructure projects, including roads, railways, and energy initiatives. Additionally, $126 million will be invested in ICT to drive digital transformation and innovation.
- Fiscal Strategy
Kenya plans to cut its fiscal deficit from 5.7% of GDP in 2023/2024 to 3.3% in 2024/2025. This will be achieved through higher revenue collection and prudent spending. The Ksh 597 billion deficit will be financed by Ksh 333.8 billion in external borrowing and Ksh 263.2 billion in domestic borrowing.
Looking Ahead
Kenya’s leadership in Africa’s startup funding ecosystem and its robust fiscal strategy underscore the nation’s resilience and growth potential. Kenya is positioning itself as a hub for innovation and sustainable development in Africa by balancing investments in infrastructure, ICT, and social programs.
