Kenyan Startups Raise a Record Sh71.85B In 2022

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

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 at 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 percent on the 2021 total of US$291,983,000,” The African Tech Startups Funding Report shows.

“That, in turn, was up 52.6 percent on the year before (US$191,381,000), and 2020’s total was 28.3 percent 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 percent of the continent’s funding,” it added.

“The number of funded startups was up only marginally, by 4.6 percent, in 2021 – as elsewhere on the continent, the growth in the number of startups receiving investment has slowed in 2022.”

Of 91 rounds, the seed was the most prevalent stage of funding at 20 rounds (47.6 percent) followed by pre-seed at 26.2 percent (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 percent in 2021.”