Nigeria: Kenyan Startups Raise Sh126bn in 2025, Outpace Egypt and Nigeria

Nairobi — Kenyan startups raised Sh126 billion ($984 million) in 2025, outpacing major African markets including Egypt, South Africa and Nigeria.

Data compiled by Africa: The Big Deal, a US-based newsletter that tracks startup funding across the continent, shows that capital raised in Kenya accounted for nearly a third of total startup funding in Africa last year.

"Funding in the country grew by 52 percent year-on-year. Debt funding amounted to $582 million, representing 60 percent of the total raised, while equity funding stood at $383 million, nearly doubling year-on-year," the report shows.

The strong performance was largely driven by energy-focused startups such as d.light, Sun King, M-Kopa, Burn and PowerGen, reflecting sustained investor interest in off-grid energy and climate solutions.

However, the number of large deals declined. A total of 75 Kenyan ventures raised $100,000 or more in 2025, ranking the country third on this metric, but representing a 23 percent year-on-year drop--the weakest performance among Africa's "Big Four" startup markets.

Kenya's strong showing has been attributed to a supportive policy environment, high investor confidence, widespread smartphone adoption and the growing role of startups in addressing local challenges across sectors such as energy, finance and agriculture.

Egypt ranked second, with startups raising Sh79.2 billion, followed by South Africa at Sh77.2 billion and Nigeria at Sh44.2 billion.

"Egypt was also the second-largest market for debt funding at $278 million, accounting for 24 percent of Africa's total, with 61 startups raising $100,000 or more during the year," the report notes.

South Africa placed third overall, with funding growing by 51 percent year-on-year to $600 million, representing 19 percent of total funding on the continent. More than 90 percent of this capital was raised through equity, making South Africa the largest equity funding market in Africa, with a 29 percent share.

Beyond the leading markets, Senegal raised Sh20.2 billion, Benin Sh12.9 billion, Rwanda Sh3.2 billion and Mali Sh2.3 billion in startup funding during the year.

Read the original article on Capital FM.