Kenya has overtaken Nigeria as Africa’s leading destination for startup investment, marking a major shift in the continent’s technology and venture capital landscape after years of Nigerian dominance.
According to the Startup Ecosystem Report 2026, Kenyan startups attracted $984 million in funding in 2025, representing a 52 percent increase from the previous year and accounting for nearly one-third of all startup investments raised across Africa.
The report showed that Africa’s startup ecosystem rebounded strongly in 2025 after a difficult 2024 funding cycle. Startups across the continent collectively raised $3.1 billion in 2025, up from $2.2 billion recorded the previous year.
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But the biggest development was the changing balance of power between Kenya and Nigeria, two countries long viewed as Africa’s leading innovation hubs.
