East Africa has emerged as a leader in startup funding in recent years, showcasing a remarkable shift in the region’s investment landscape. In 2020, the region secured 31% of the continent’s total investment, which, although a leading share, was marginally ahead of West Africa by just $6 million from a $1.1 billion total.
However, it wasn’t until mid-2022, with a noticeable slowdown in funding across the continent, that East Africa’s dominance truly took shape. Since then, the region has accounted for 30% of the total funding (excluding exits), surpassing other regions in the process.
Looking back at the period from 2020 to mid-2022, East Africa’s funding share had lagged behind, capturing only 22% of the total funding while West Africa claimed a larger portion of 41%. Over the years since 2019, East African startups have secured over $4 billion in funding, which now makes up 25% of Africa’s total investment.
Kenya has played a pivotal role in East Africa’s rise as a funding powerhouse. Since 2019, the country has raised an impressive $3.3 billion, representing 84% of East Africa’s total investment. Kenya’s role has only grown stronger, with the country outperforming expectations, especially since the funding slowdown began in mid-2022. In fact, Kenya has overtaken Nigeria to become the leader in startup funding across the continent. Notably, while Kenya accounts for just 4% of Africa’s nominal GDP and population, it attracted an astonishing 29% of the continent’s total startup funding in 2024.
The funding activity in Kenya has largely been dominated by a few significant players. The pay-as-you-go off-grid energy sector, in particular, has seen substantial investment, with major players like Sun King, M-Kopa, and d.light raising nearly $1.5 billion since 2019—44% of Kenya’s total funding. Alongside them, companies like Twiga Foods, Wasoko, and Copia Global, which are disrupting the retail and supply chain sectors, have collectively raised around $400 million. However, these companies have faced challenges, with Copia entering liquidation and Twiga and Wasoko undergoing restructuring.
Despite these challenges, the overall funding landscape in Kenya remains vibrant, with more than 150 startups securing at least $1 million in funding since 2019. This speaks to the depth and diversity of Kenya’s startup ecosystem, which continues to attract investors from across the globe.
While Kenya remains the dominant force in East African funding, other countries in the region have also secured noteworthy investments. Tanzania has raised nearly $300 million since 2019, placing it seventh in Africa. Half of this investment has been directed toward just two companies—Zola Electric and Nala. Uganda, the region’s third-largest recipient of funding, ranks tenth in Africa, with companies like Tugende and Asaak accounting for half of its total funding.
Rwanda is another East African country that has started to gain traction, approaching the $100 million mark in funding. Meanwhile, Ethiopia and Sudan have seen smaller funding rounds, including the notable funding for Sudan’s YC-backed fintech startup, Elevate.
