Mombasa dropped its position in the most preferred markets for startups in the world, according to the latest report by StartupBlink's Global Startup Ecosystem Index 2023.
The report released on Monday, June 5, indicated that Mombasa was ranked 937 - dropping by 46 slots from the previous year's performance.
Kampala, Uganda, overtook Kenya's coastal city, after being ranked 390th. Overall, Uganda reclaimed its position among the global top 100 countries after dropping out of the Index in 2022.
The growth of its capital city was attributed to the diverse entrepreneurial culture and educated workforce. Further, several government initiatives were praised for nurturing the growth of the startup ecosystem in the city.
Other non-government initiatives lauded for their contribution to strengthening Uganda's prowess included telecommunications companies, and startup incubators such as the Stanbic Business Incubator, Innovation Village, Hive Collab, and Outbox Hub.
Regarding cities, Nairobi jumped 25 spots in global rankings to 137th, retaining its position as the leading city in the Eastern Africa region.
Nairobi was praised for hosting global technology giants such as Google, Microsoft, Samsung and Intel, making the city more attractive to startups.
On the other hand, Kenya preserved its position (62) globally and third in Africa. The country also surpassed Nigeria, which dropped by three slots to position 64.
However, Mauritius (61) displaced Kenya as the highest-ranking country in Eastern Africa.
Overall, Kenya was lauded for its pioneering status in providing a continental ecosystem that outwits countries with large populations, such as Nigeria.
Mobile banking solutions, growing entrepreneurial culture and a strong English-speaking point of access to the African market were part of the reasons for Kenya's listing among the top destinations for investors.
"The Kenyan Startup Act is a framework that encourages a culture of innovation and entrepreneurship through incentives for startups and incubators."
"Another recent public sector initiative is the Micro and Small Enterprises (MSE) policy which aims to formalize micro and small-sized enterprises while creating a business-friendly environment for them," part of the report read in part.
