Kenyan Startups Raise a Record Sh71.85bn in 2022

A display at Semiconductors Technologies Limited, or STL, in Nyeri, Kenya, May 25, 2023.
7 February 2023

Nairobi — Kenyan startups raised a record Sh71.85 billion last year, boosted by recording funding in .

Latest data from Disrupt Africa, an online news platform for startups, shows that funding increased from Sh36.49 billion in 2021, to Sh71.85 billion in 2022, representing a 96.9 percent jump.

Fintech led with the number of deals at 26 (28.6 percent) with retail-tech 16 (17.6 percent).

"However, the total amount of funding Kenyan startups secure yearly is snowballing. The US$574,809,000 raised this year is up 96.9 per cent on the 2021 total of US$291,983,000," The African Tech Startups Funding Report shows.

"That in turn was up 52.6 per cent on the year before (US$191,381,000); and 2020's total was 28.3 per cent higher than the preceding year," the report added.

In Africa, Kenya was ranked third behind Nigeria (122 billion) and Egypt (Sh101.5 billion).

"Ninety-one (91) startups were backed in Kenya (14.4 percent of Africa's total), and combined they secured US$574,809,000 - 17.2 per cent of the continent's funding," it added.

"The number of funded startups was up only marginally, by 4.6 per cent, in 2021 - as elsewhere on the continent, the growth in the number of startups receiving investment has slowed in 2022."

Of 91 rounds, seed was the most prevalent stage of funding at 20 rounds (47.6 percent) followed by pre-seed 26.2 per cent (11 rounds).

"There were three rounds reported in each of the pre-Series A, Series A, and Series B stages; and two Series C rounds. As with everywhere on the continent, Kenya remains an early-stage ecosystem, although the solid number of later stage rounds account for a higher percentage of the country's rounds than elsewhere."

The number of startups that raised funds with at least one female co-founder declined to 24 ventures (26.4 percent) from 28 ventures (32.2 percent) in the period.

"Local founders are listed at 73 (80.2%) of the Kenyan startups, up from 63 (72.4%) in 2021. Kenya has a higher than average prevalence of international founders, at 27 startups (29.7%), although this is substantially down from 42.5 per cent in 2021."

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