A May 2023, report by United Nations Industrial Development Organisation (UNIDO) ranked Kenya among the Big 4 in terms of start-up funding in Africa.
The report used funding raised by African startups across African Countries for the period between 2015-2022 as its main indicator.
Admirably, it was found that over that period of time, 17 per cent of total funding by global investors to African investors went to Kenya.
Other countries that were ranked among the Big Four included; South Africa, Egypt and Nigeria.
Nigeria was the most preferred country by global investors when it came to putting money into startups.
Kenya tied with South Africa at 17 per cent and the North African Country was ranked fourth at 14 per cent.
In a testament to how the country excelled in the global market, the rest of Africa only got 33 per cent of funding from investors for startups.
Kenya and the rest of the Big Four were praised for creating an ecosystem that boosted investors’ confidence as well as the guaranteed success of startups.
The study further identified three ways in which startups were succeeding in Kenya.
“African platform businesses often (have to) make significant investments along the value chain, such as in logistics and transport, rather simply connecting supply and demand,” the report noted.
Additionally, the startups leverage existing customer relationships to offer multiple products or services.
The report in particular pointed out how non-fintech startups were providing financial services like loans, and insurance.
“The startups typically rely on large networks of agents, who are already known and trusted in their communities, to sign up new customers and take orders from them,” the report explained how investors coming to Kenya found their way to profitability.
