Kenyan startup funding slips to Sh16.3bn in first half of 2026

NAIROBI, Kenya, July 20 – Kenyan startups raised Sh16.3 billion in the first half of 2026, slightly lower than the Sh17 billion raised during the same period last year, according to Africa: The Big Deal.

The report shows Kenya ranked third in Africa for startup funding, behind Egypt, which attracted Sh42.3 billion, and Nigeria, which raised Sh32.8 billion.

Looking only at equity funding, Nigeria led with $214 million, followed by Egypt with $183 million, while South Africa raised $66 million and Kenya $46 million.

“If we focus purely on equity, Nigeria actually came on top ($214m) with Egypt second ($183m), and the other two some distance behind ($66m in South Africa, $46m in Kenya),” the report said.

Beyond the continent’s four largest startup markets, Tanzania, Côte d’Ivoire and Morocco each attracted more than $25 million in funding during the first six months of the year.

The slight decline follows a strong 2025, when Kenyan startups raised about Sh126 billion, outperforming Egypt, South Africa and Nigeria.

Last year’s performance was driven largely by clean energy startups, including d.light, Sun King, M-KOPA, BURN and PowerGen, reflecting strong investor interest in off-grid energy and climate technology.