NAIROBI, Kenya Jun 21 – Yearly funding for Kenyan start-ups is projected to hit Sh100 billion in the next three years, this was revealed during the 7th edition of Digital and Technology Week (DTW) 2022 formally Social Media Week.
In the first three months of 2022, Kenyan Startups raised Sh48 billion in venture funding more than the country did in all of 2021 when start-ups raised Sh41 billion.
Kenya is now among the Big Four countries in Africa attracting massive funding with Nigeria leading the way with Sh60 billion.
Speaking during the opening ceremony of Digital and Technology Week in Nairobi, Go Gaga Experiential Chief Executive Officer Norah Muthoni Mumo said start-ups dealing in payments and remittances will receive the highest amount of investment.
“The payment and remittances sector addresses a huge fundamental issue of how to pay and get paid affordably. The space has big companies with great track records, and investors like spaces that have proven value and have already attracted big investors,” She said.
She attributes the projected growth to investment from corporate Kenya in accelerators, incubators and innovation programmes as well as investments in innovation funding coupled with a growing community of successful investors, and entrepreneurs.
“Kenya is a leading hub for entrepreneurship on the continent because of a growing number of engaging international investors, a huge population with access to technology, and a growing number of startup support organisations active in the ecosystem,”Mumo revealed.
Start-ups in Africa have raised over Sh100 billion in the first quarter of 2022, breaking the record established in the third quarter of 2021 by just a few millions. Compared to last year, there’s been 2.5x more funding raised in Q1-22 than in Q1-21.
However, despite the huge growth, funding flowing to African startups is still a drop in the ocean of global venture funding representing just one percent of global venture funding.
“Governments in Africa must invest in this space through reducing the burden of regulation, embedding incentives within legislation and investing in science and technology skills, ” Mumo added.
The four-Day event attracted over 600 participants in Africa including corporates, agencies, Government, Media and Technology companies both local and International.
“Such events bring life to the industry. As the government we assure you of our support in creating an environment for startups to thrive, we are on the road to equipping more than 2 million young Kenyans with the necessary digital skills to help start-ups go to the next level, we will continue to create supportive policies in a bid to increase investments in this area,” said ICT Chief Administrative Secretary Maureen Mbaka.
