Kenya is considered a major tech hub in Africa and has long attracted investor interest. The East African nation’s economy boasts one of Africa’s highest GDPs with an estimated $106.4 billion USD in 2021, according to Statista. Does the same reflect in the VC funding going towards start-ups in 2021?
In 2021, Kenyan start-ups secured $369.6 million USD over 67 disclosed funding rounds (excluding grants, prizes, and non-equity fundraises). This amounts to 7% of Africa’s total funding in 2021, which was $4.76 billion USD and 9% of the 493 disclosed funding rounds.
To compare with the other tech hubs, Nigerian start-ups secured over $1.8 billion USD over 118 disclosed funding rounds which is 38% of the total amount and 23% of the total African funding rounds.
South African technology companies also closed over $1 billion USD over 94 funding rounds, which represents 22% of the funding amount and 19% of the total disclosed rounds in Africa.
The North African tech hub, Egypt, secured $464.1 million USD in VC funding, over 101 funding rounds; 9.7% of the African total amount and 20% of the total disclosed funding rounds.