Startups in Kenya secured $984m in funding last year, but a fresh bilateral push from Rome seeks to open the taps for follow-on capital even as an artificial intelligence (AI) opportunity emerges.

For three consecutive years, Kenya has been Africa’s crown jewel, attracting record venture capital into its vibrant start-up ecosystem. Official data shows that in 2025 alone, the East African country attracted $984 million through a blend of capital deals, amid a scarcity of Series A and B funding rounds in emerging markets.

These statistics were laid bare on the margins of the Italy-Kenya Business Forum organised by Harmonic Innovation Group, bringing together Invest Kenya CEO John Mwendwa, President William Ruto’s Special Envoy on Technology Ambassador Philip Thigo, and Daniel Mahinda, the CEO of Nairobi International Financial Centre. This round-table drew leaders of multilateral financiers and venture capital entities from Europe to discuss how Italian and EU financing systems could be channeled better to plug Nairobi’s later-stage startup financing gap.

Harmonic Africa Fund: €50m venture capital for Africa

A key development during this forum was the announcement of a €50 million ($58.7 million) venture capital push by Harmonic Innovation Group in collaboration with Primo Capital SGR. This fund, by the Italy-headquartered innovation and industrial entity that supports startups, firms, and institutions, marks the first venture capital offering from Rome that is strategically positioned to benefit Africa.

The €50 million will be paired with H-ASAP (Harmonic Africa Startup Acceleration Programme). This is a five-year accelerator initiative that will operate a Nairobi centre, strategically deploying capital and support to 5,000 entrepreneurs across Africa.

For Italian institutional and industrial investors, the proposition is modelled to deploy venture capital, helping firms to grow at scale in a market of roughly 1.4 billion consumers under the African Continental Free Trade Area (AfCFTA), using Kenya as the entry point.

“Italian capital, industrial expertise and institutional backing are now meeting Kenya’s scale, talent and preferential market access,” Mwendwa stated in an update seen by The Exchange. “Our job at Invest Kenya is to convert this momentum into pipeline, investment, and jobs.”

Artificial Intelligence (AI) 10 billion initiative

For start-ups in Africa running AI-powered innovations, Rome’s funding commitments come at an opportune time. This offering is poised to sit alongside a larger multilateral architecture that was unveiled at the Nairobi AI Forum in February 2026.

Dubbed the AI 10 Billion Initiative under the steering of the African Development Bank, the UNDP’s AI Hub for Sustainable Development (backed by Italy’s Ministry of Enterprises and Made in Italy), UNDP Timbuktoo, and the Africa Climate and Energy Nexus (AfCEN), this move is designed to mobilise double-digit billion-dollar investment into the artificial intelligence (AI) market across the continent. Africa’s AI market is poised to hit $3 billion in value by 2030.

For Kenya, AI 10 Billion Initiative firms up a strategic bet: that AI, not mobile money alone, will define the next wave of venture capital returns. In recent years, policymakers in Nairobi have been deftly assembling key digital infrastructure and policy reforms aimed at transitioning Kenya from a fintech-first hub to a regional AI and deep-tech centre.

AI Everything Kenya summit to test investor appetite in May

Kenya’s next live test of that thesis comes between 19 and 21 May 2026, when Nairobi hosts the AI Everything Kenya summit. The global event is structured across two venues: an Inclusive AI Summit at the Sarit Expo Centre, and a larger expo and conference at the iconic Kenyatta International Conference Centre.

The showcase is poised to attract venture capitalists, development finance institutions, and private equity players scouting for ‘the next big thing’ in an African AI ecosystem projected to exceed $3 billion in value by 2030.

Ambassador Philip Thigo states on the summit’s official portal that the summit marks a departure from legacy technology models. “Africa’s tech ecosystem is vibrant and purpose-driven,” he highlights. “Instead of replicating legacy models, we are building new ones through innovations in food systems, healthcare, education, and governance. Every innovation serves the mission to uplift lives, bridge gaps, and build futures.”

With €50 million in committed Italian venture capital, a five-year accelerator programme, and multilateral AI financing now in the pipeline, the question for Nairobi is whether it can turn investment momentum into sustained capital flows.

For European investors still cautious about African late-stage risk, Kenya is offering a proposition that blends first-mover advantage inside the AfCFTA with Italian underwriting and multilateral de-risking. All eyes are now on the May AI Everything summit to see whether that formula delivers for all stakeholders.