East Africa had already led in funding back in 2020, securing 31% of the total investment at the time. However, this lead was marginal, amounting to just $6 million more than West Africa out of a total of $1.1 billion. It was not until the slowdown in funding activity from mid-2022 onward that East Africa’s dominance became more pronounced. Since then, the region has accounted for 30% of all funding (excluding exits), surpassing other regions. In contrast, during the previous two-and-a-half-year period (2020 to mid-2022), East Africa had trailed significantly behind, securing only 22% of the total funding compared to West Africa’s 41%. Overall, since 2019, East African startups have raised over $4 billion, representing 25% of the total investment across the continent.

Kenya has been the driving force behind East Africa’s rise in startup funding. Since 2019, the country has secured $3.3 billion, accounting for 84% of the region’s total. Moreover, Kenya’s dominance in regional funding has only strengthened over time. Since mid-2022, when the funding slowdown began, Kenya has consistently led the continent in attracting investment, a position previously held by Nigeria. Among Africa’s ‘Big Four’ economies, Kenya stands out as the most overperforming relative to its economic size. In 2024, for instance, the country accounted for just 4% of Africa’s nominal GDP and population but attracted an impressive 29% of the continent’s total startup funding.

Who Is Raising All That Funding?

Kenya’s funding landscape has been dominated by a few key players. The top three recipients are the long-established leaders in the pay-as-you-go off-grid energy sector—Sun King, M-Kopa, and d.light —which have collectively raised nearly $1.5 billion since 2019, accounting for 44% of the country’s total. Following them are companies disrupting the retail and supply chain sectors, including Twiga Foods , Wasoko, and Copia Global, which together secured $400 million during the same period. However, these firms have faced significant challenges recently, with Copia entering liquidation and both Twiga and Wasoko undergoing restructuring. Beyond these major players, more than 150 startups in Kenya have raised at least $1 million in funding since 2019.

Beyond Kenya: Funding Trends Across East Africa

While Kenya dominates the region’s funding landscape, other East African countries have also attracted notable investment. Tanzania has raised nearly $300 million since 2019, ranking seventh on the continent. Half of this amount went to just two companies—Zola Electric and Nala . Uganda follows as the region’s third-largest recipient (#10 in Africa), with Tugende and Asaak accounting for half of its total funding during the same period.

Rwanda is the only other East African market approaching the $100 million mark, while Ethiopia and Sudan have also seen some activity, including funding for Sudan’s YC-backed fintech startup, Elevate. Meanwhile, Mauritius and Madagascar recorded minimal investment, and no deals exceeding $100,000 were identified in the remaining six markets—except for offshore crypto exchanges registered in Seychelles for tax purposes.