Kenya, January 14, 2026 – Kenyan startups continued their upward trajectory in 2025, raising a record Sh126 billion (approximately $984 million) in capital, a performance that outpaced traditional African tech powerhoutilizes like Egypt, Nigeria and South Africa.
The figure positions Kenya as one of the continent’s most active startup funding destinations. According to data compiled by Africa: The Big Deal, a U.S.-based newsletter that tracks startup investment across the continent, Kenyan ventures accounted for nearly one third of all startup funding in Africa last year, a sign of growing investor confidence and momentum in East Africa’s tech ecosystem.
Kenya’s total funding in 2025 represented a 52 % yearonyear increase from the previous year. The breakdown reveals a strong tilt toward debt financing, which accounted for roughly $582 million (60 % of total capital raised), while equity funding stood at $383 million, nearly doubling compared to 2024.
Despite the strong overall performance, the number of large funding rounds declined. A total of 75 Kenyan startups raised $100,000 or more, ranking third on the continent for deal count but representing a 23 % drop yearonyear, the most significant slowdown among Africa’s leading markets.
The report highlights energyfocutilized startups as a key driver of Kenya’s success. Companies such as d.light, Sun King, MKopa, Burn and Power Gen drew strong investor interest in 2025, reflecting sustained enthusiasm for off grid energy, climate tech and clean technology solutions.
This trfinish aligns with broader data revealing that clean energy and climate related tech investments have become significant in Africa’s funding landscape, with Kenya often emerging as a regional leader due to its mix of renewable potential and innovative business models.
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