Kenya’s startups ecosystem ranked 58th worldwide in the latest report by Startup Blink, outpacing all other African countries except South Africa, climbing back to second place after holding the third position for three consecutive years.
- •Regionally, it continues to dominate Eastern Africa, with a startup score six times higher than Uganda’s.
- •Nairobi retains its dominance as an undisputed hub, surging six spots to rank 107th globally and maintains its top spot in Eastern Africa for the fifth consecutive year.
- •Meanwhile, Mombasa has re-entered the global top 1,000 cities for startups, at 916th, enjoying a blistering 104% growth rate.
“With access to a mature economy and a growing culture of entrepreneurship, Kenya offers a strong English-speaking point of access to the African market. In terms of attracting funding for startups, Kenya, along with Nigeria, Egypt, and South Africa, has historically been a top destination for Africa’s investors,” the report said.
However, the Kenyan startup ecosystem remains highly centralized in the capital city as Nairobi’s score is nearly fifty times larger than Mombasa’s. Despite this imbalance in the concentration of resources, talent, and capital, vast regions across Kenya have embraced the mobile money economy, spearheaded by pioneering fintech platforms like M-Pesa, serving as a blueprint for digital innovation across Africa.
“Kenya’s pioneering status as a leading continental ecosystem is even more impressive considering the relatively low population compared to countries such as Nigeria,” the report added.
Fueling the resurgence of Nairobi as a startup destination is a blend of policy, capital, and infrastructure. The ecosystem is maturing, but the pressure to scale beyond a 50-million-person domestic market has forced founders to aim regionally from the outset.
Government involvement is also evolving as seen with the enactment of the Startup Bill, which outlines policy improvements like mandates local ownership and allocates 15% of startup expenses to Research and Development — provisions that have stirred interest around foreign investment and innovation agility.
At the same time, initiatives like Konza Technopolis and the Kenya Innovation Bridge remain vital in marketing the country’s suitability for innovative growth. Moreover, the new digital nomad visa, with its US$55,000 annual income threshold, signals a play to attract global talent and plug skills gaps.
International actors remain instrumental for Kenya’s startup development as partnerships with agencies like the UK’s FCDO are helping to develop skills, foster inclusive growth, and bridge capital shortages. Along the private sector, the presence of multinational tech firms and accelerators in Nairobi provides a credible launchpad for startups targeting global markets.
Kenya has also seen a growing diversification in emerging startups. While many older startups were either fintechs or BNPLs, climate-techs and agri-techs are on the ascent path. Last year, startups with interests in e-mobility and clean energy received millions of dollars in funding.
Kenya’s startup scene is not without its faults, according to the report. It suffers from thin mentorship pipelines, underdeveloped infrastructure, and limited access to follow-on capital. Despite visible growth, the lack of depth in support services and scale-ready capital pools keeps many promising ventures stuck in early stages.
The other countries in the top 100 startup ecosystems are Egypt, Nigeria, Cape Verde, Morocco, Ghana, Tunisia, Rwanda, Uganda, Namibia, Senegal, and interestingly — Somalia at Position 100. Globally, the leading destinations are the United States, the United Kingdom, Israel, Singapore, and Canada.
