Kenya ranks fourth in Africa in terms of fintech funding received, behind Nigeria, Egypt, and South Africa.
- Over the course of 24 months leading up to July this year, Kenyan fintech startups raised $174.2 million in funding across 104 funding rounds.
- This funding represents 4.8 percent of the total funding received by African fintech startups during the same period.
- Notable beneficiaries of funding include financial services provider Power Financial Wellness, which secured Ksh376 million ($2.6 million).
- The majority of fintech funding in Africa goes to the “big four” startup ecosystems, with Nigeria, South Africa, Egypt, and Kenya accounting for 91.2 percent of investments.
- Ghana and Uganda also ranked substantially in terms of funding share, with three percent and two percent, respectively.
- The leading segments of sector-funded firms in Kenya are payments and remittances at 43.4 percent, followed by lending and financing at 37.8 percent. Other segments include blockchain, insuretech, invest tech, business administration, security and ID, personal finance, and others.
The report indicates that payments and remittances, as well as lending and financing, continue to dominate the African fintech landscape, attracting the majority of investor interest. However, invest tech and personal finance have experienced significant growth in market share. Despite Kenya’s strong fintech presence, the country saw only one fintech startup acquisition during the review period, in contrast to South Africa and Nigeria. The report highlights the rapid growth of Africa’s fintech ecosystem, with projections indicating that sector startups could generate up to $30 billion in revenue by 2025.