- Mpesa has a 7 % penetration of the GSM base in Egypt and 40% in Ghana while having a dominant 90% in Kenya.
- Kenya’s 91 startups got the third-largest capital inflow in Africa.
- A report released by Disrupt Africa indicated that Kenya’s average investment size was $6.3 million.
Africa’s tech Industry received a significant reveal as Kenyan tech startups accumulated $574.8 million(Ksh 71.7 billion) in funding last year. This figure astonishes many within the industry since it truly puts into perspective the current direction of Africa’s digital economy. Nowadays, funding tech startups is one of the few ways governments and organizations plan to stay ahead of the 4th Industrial Revolution.
It is crucial to understand that Kenya, along with Nigeria and South Africa are at the top of Africa’s tech industry. In Kenya, 308 promising tech startups have inspired various organizations and governments to invest in them Nairobi, is the leading hub of Kenyan tech innovators and is home to 97.4 % of the total tech startups.
As a country, Kenya has one of the fastest-growing tech sectors in Africa. Also known as Silicon Savannah, Kenya has a plethora of African tech innovators.
M-Kopa Solar, one of the few prominent Kenyan tech startups, bagged the most significant funding last year, amounting to $75 million (9.4 billion), showcasing Africa’s tech industry’s potential brilliance.[Photo/Quartz]The emphasis on Kenyan tech startups hails its roots from the several success stories of tech innovators who say the gaps within Africa’s tech industry. One such success story is Mpesa, Africa’s first iteration of digital currency. The product revolutionized Africa’s Digital economy as it ushered in the concept of mobile banking.
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Today Mpesa has a 7 % penetration of the GSM base in Egypt and 40% in Ghana while having a dominant 90% in Kenya. A Kenyan tech startup that gained the status of “unicorn” is like honey to tech innovators and investors.
Kenya is the most popular investment destination on the continent, second only to Nigeria.
Gabriella Mulligan, Co-founder of Disrupt Africa, stated, “Kenya has a well-established reputation as a pioneer in Africa’s tech space. Especially as the home of M-Pesa, Ushahidi and the iHub, its journey has been far from smooth.”
Kenyan tech Startups hit Ksh 72 billion.
In 2022, funding tech startups became the “new investment plan” in Kenya. Many tech innovators had promising and unique inventions, each tailor-made to benefit the economy in one way or another.
The country’s 91 startups got the third-largest capital inflow in Africa into the review period at 17.2 per cent of the total new funding recorded in the continent. Keep in mind that these new figures have doubled from its previous year in 2021, which was at $292 million (Ksh36.6 billion).
This figure represents a considerable leap when viewing Africa’s tech industry. This is mainly because, in 2020, the total amount raised for funding the startups in Kenya stood at $191.4 million (Ksh23.9 billion), up from $149.1 million (Ksh18.6 billion) in 2019. The included nature of the total funding for tech startups paints a vivid picture of Kenya’s various economic plans.
ALSO, READ Kenyan startup’s yearly funding to hit US85 million by 2025.
In terms of the number of funded, venture fintech was the leading space with 26 startups backed. Ecommerce and retail tech followed with accounted for 16 startups. A report released by Disrupt Africa indicated that Kenya’s average investment size was $6.3 million. This is up from $3.4 million in 2021. These figures paint a promising picture for the country since they indicate it has confidence in its tech innovators and ecosystem.
In addition, the report indicated that the overall funding of Africa’s tech Industry hit $ 3 billion for the first time.633 beneficiaries highlighted ion the constant resilence especially given the global financial headwinds experienced within the year
It represented a 12.2% hike in funded tech startups and a 55.1 % rise in the value of secured funding compared to 2021.
The total funding of tech startups in Kenya has rapidly increased. Africa’s tech Industry is steadily thriving, which will only increase over time. Africa currently holds 60% of the globe’s youth which directly reflects in the vast human capital the continent holds.
At the same time, Africa’s digital economy is projected to reach $180 billion by 2030. The technological age will see Africa becoming a developed continent. Kenyan tech innovators are the prime example for those seeking to be a the top o the technological wave. Will this new figure finally propel Kenya to greater heights? Will funding tech startups make a difference in the overall race for supremacy? These are but a few questions we should all be asking when viewing the current trajectory of Africa’s tech Industry.
