President William Ruto on Wednesday revealed the role his administration played in ensuring the successful raising of startup capital by Kenyan businesses and entrepreneurs.
On Tuesday, data by research outfit 'Africa: The Big Deal’ showed that Kenya emerged top globally after securing Ksh124 billion (USD800 million) worth of start up capital in 2023.
In a statement on Wednesday, Ruto indicated that the feat was achieved thanks to his government's efforts to improve the business environment.
He further noted that the improvement was fueling job creation within the country which is commonly referred to as African Silicon Valley.
"Proud that Kenya leads Africa in startup capital, securing an impressive $800 million (Ksh 124 billion) in 2023. Our strategic reforms have enhanced the business environment, positioning Kenya as the preferred choice for investors," celebrated the Head of State.
"This achievement reflects our commitment to fostering innovation and economic growth. The substantial funding is driving groundbreaking ideas, fueling technological advancements, and propelling job creation. Thanks to our innovative startup founders, Kenya is now a global innovation hub."
The report indicated that Kenya's closest competitor, Egypt, raised Ksh101 billion, while South Africa raised Ksh95 billion.
Nigeria ranked a distant third after raising Ksh65 billion, half of Kenya's total funding for startups.
"While Kenya suffered a decline (-25% YoY), its share of Eastern Africa’s funding grew from 86% in 2022 to 91% in 2023. 93 start-ups raised $100k or more during the period (19% of Africa’s total)," read the report in part.
Part of the reforms the Head of State introduced after taking over the mantle included allowing Kenyans to access cheaper credit via the Hustler Fund platform.
He also helped millions get delisted from the Credit Reference Bureaus (CRBs) which saw their credit score rating shore up.
The Head of State also included the Start-Up Bill expected to be signed into law providing tax relief for new businesses.
Businessmen have, however, been complaining of a tough operating environment after a slate of new taxes was introduced.
