Kenyan startups secure record Q1 funding

The first quarter of 2025 witnessed a remarkable milestone for Kenya's vibrant tech startup scene, with companies attracting a record KSh12.93 billion (approximately $90 million) in funding. This achievement, reported by investment tracker Africa: The Big Deal, places Kenya on par with continental powerhouses Nigeria and South Africa for top funding destinations in Africa during Q1.

The fintech sector continued its dominance in attracting investment, with standout deals such as LemFi securing an impressive $53 million and mobile-payments firm Naked raising $38 million. These figures underscore the sustained investor confidence in Kenya's innovative financial technology solutions.

However, the report also highlighted a persistent challenge: the gender gap in funding. Female-led ventures accounted for a mere 2% (around $10 million) of the total Q1 funding, emphasizing the need for more concerted efforts to support and finance women entrepreneurs in Kenya's rapidly growing startup ecosystem.

Overall, Kenyan tech companies demonstrated their strong appeal to investors by attracting approximately Sh82.3bn ($638m) throughout the previous year, solidifying Nairobi's reputation as a leading innovation hub on the African continent. This continued influx of capital is crucial for driving further innovation, job creation, and economic growth.