Kenya has been ranked 58th globally in the Global Startup Ecosystem Index 2025, marking its debut in the top 60 and reinforcing its reputation as one of the most business-friendly nations worldwide.
Sub-Saharan Leader in Ecosystem Growth
The country rose five places from last year’s 63rd position, recording a 33.5% annual ecosystem growth—the highest among Africa’s top five startup nations.
Within the continent, Kenya ranks second behind South Africa (53rd globally), ahead of Egypt (65th), Nigeria (66th), and Rwanda (96th).
“Kenya’s consistent rise, despite East Africa showing the slowest sub-regional growth, reflects its resilience and attractiveness to investors,” the report notes.
The Global Startup Ecosystem Index evaluates 118 countries and 1,473 cities based on startup activity, quality, and business environment. It identifies emerging business hubs and flags regions at risk of stagnation.
Nairobi and Mombasa: Accelerating Urban Innovation
Nairobi climbed six spots to rank 107th globally, just shy of the top 100. Mombasa surged from 1,122 to 916, registering Kenya’s highest city-level growth rate at over 104%.
“There are now two Kenyan cities in the global top 1,000, with Mombasa joining Nairobi,” the report highlights. “Nairobi maintains a healthy growth rate above 22%, signaling sustained momentum.”
Kisumu, however, lags, ranking 1,020 globally, with calls for more inclusive regional startup development.
Funding Strengthens Kenya’s Continental Position
In 2024, Kenyan startups raised KSh 82.3 billion ($638 million), topping Africa’s startup funding charts. Nigeria followed with KSh 52.9 billion ($410 million), Egypt with KSh 51.6 billion ($400 million), and South Africa with KSh 51 billion.
This funding surge, coupled with ecosystem expansion, positions Kenya as a strategic launchpad for tech-driven solutions across Sub-Saharan Africa.
