A report released by Pan-African publication and research firm Disrupt Africa has pointed out fintech as the most vibrant subsector within the Kenyan startup ecosystem.
The report dubbed The Kenyan Startup Ecosystem Report 2022, says that fintech is leading in terms of levels of activity. Out of the 308 companies that the report tracked, 93 of them were within the fintech space, representing 30.2%. Agri-tech and e-health subsectors come in second at 10.1% per cent of Kenyan startups while e-commerce and retail-tech, recruitment and HR, and ed-tech coming in third, fourth and fifth respectively.
“Kenya has an extremely varied range of activity across its startup ecosystem, with ventures active across areas as varied as mobility, logistics, agri-tech, marketing, prop-tech, legal-tech, waste management, and energy,” says the report.
The survey tracked startups since 2015 and gives a comprehensive insight that evaluates several facets such as the inclusion of women, funding, mergers and acquisitions among other elements.
Nearly half of the 308 companies tracked have undergone some form of acceleration or incubation over the course of their lifespan, the survey shows.
“In all, 140 companies have taken part in either a local or an international accelerator or incubator, with this 45.5 per cent figure better than the 45.1 per cent seen in Nigeria, the 38.6 per cent witnessed in Egypt, and the 25.7 per cent rate tracked in South Africa”
The startups have also been instrumental in creating employment with a combined total of 11,462 employees.
The startup ecosystem in Kenya has also been a proffered destination for and by local and international venture capitalists.
“Kenya has been the second most popular investment destination on the continent, after Nigeria,” says the report, “At least 242 Kenyan startups have secured funding, totalling at least US$1,281,918,200.”
New startups in this ecosystem are focusing on emerging themes, like climate tech, embedded finance and sustainability, the Report says.