Kenya has emerged as a prominent startup hub, driven by a thriving entrepreneurial ecosystem and supportive government policies. The country boasts over 300 active startups, with Nairobi being the epicenter of technological advancement. Various industries, including fintech, health tech, agritech, and e-commerce, characterize Kenya's startup scene.

The government actively fosters a supportive business environment through initiatives like Kenya Vision 2030. This strategic plan aims to take the country to a newly industrialized, middle-income status by 2030, driving economic growth and development across various sectors. Various incubators and accelerators, like iHub and MEST Africa, provide the necessary resources to support top startups.

Kenya's economic diversification efforts have also led to the rise of several high-potential industries beyond technology. Agriculture remains a cornerstone of the economy, contributing significantly to GDP and employing a large portion of the population. The tourism sector, with attractions such as the Maasai Mara, Mount Kenya, and the coastal beaches, continues to draw millions of visitors annually, contributing to the country's foreign exchange earnings. Kenya is making strides in renewable energy, particularly in geothermal and wind power, which are critical to its sustainable development goals.

1. AquaRech LTD

Year Founded: 2019
HQ: Kisumu, Kisumu County
Size: 1-50
Founders: Dave Okech

AquaRech LTD is one of the only Kenyan startups in the fish farming sector. It provides a comprehensive mobile platform that connects small and medium-scale fish farmers with high-quality inputs such as feeds, fingerlings, and markets. AquaRech integrates IoT and farm management solutions to improve fish farmers' productivity by offering important production metrics and technical support. It also provides a "Buy Now, Pay Later" credit system, allowing farmers to manage their feed costs more effectively and improve profitability.

In recent years, AquaRech has secured significant funding to support its growth and expansion. In 2023, the company raised $2.4 million to integrate technology into its operations further and scale its services. This funding will help AquaRech improve its market reach, aiming to serve 10,000 farmers by the end of 2024. AquaRech also plans to set up additional cold storage facilities to streamline fish sales, reducing farmers' reliance on mediators and increasing their income.

2. MarketForce

Year Founded: 2018
HQ: Nairobi
Size: 200+
Founders: Tesh Mbaabu and Mesongo Sibuti

MarketForce 360 is one of the Kenyan startups specializing in providing a B2B platform for consumer brands to optimize their sales and distribution networks in Africa. It helps retailers order and pay for goods directly from suppliers through a digital marketplace, ensuring efficient restocking and inventory management. MarketForce 360 offers tools for field sales agents to manage orders, deliveries, and payments to reduce operational costs​.

In February 2022, it raised $103.1 million in a Series A funding round led by V8 Capital Partners, alongside other investors like Ten13 VC and SOSV. This funding aims to accelerate MarketForce's expansion across Africa, improve its technology platform, and grow its team to support the increasing demand.

3. Tushop

Year Founded: 2021
HQ: Nairobi
Size: 1-50
Founders: Cathy Chepkemboi

Tushop is a Kenyan social-commerce startup that aims to make groceries more affordable and accessible through community group-buying. It allows community leaders to collect orders from their neighbors and manage deliveries, cutting down costs and providing significant savings of up to 60% compared to traditional retailers. Tushop's model addresses the high cost of food in Kenya, where residents spend a substantial portion of their income on groceries. By leveraging local networks, Tushop simplifies logistics and offers an income opportunity for community leaders who coordinate these purchases and deliveries.

In 2022, Tushop raised $3 million in a pre-seed funding round led by 4DX Ventures, with participation from notable investors like Breyer Capital, JAM Fund, and Chandaria Capital. This funding will enable Tushop to scale its operations within Nairobi and eventually expand to other cities in Kenya. Tushop plans to invest in its technology to enhance user experience and increase its market reach.

4. Duhqa

Year Founded: 2021
HQ: Nairobi
Size: 51-200
Founders: Victor Maina, Davis Angwenyi, and Dudu Moilwa

Duhqa is one of the Kenyan startups in the B2B retail tech industry. It aims to empower informal merchants, often called "Dukas." It provides digital tools to source and pay for inventory, secure delivery, and access short-term financing. Duhqa optimizes the distribution and supply chain by connecting these microstores directly to manufacturers, leveraging technology to enhance efficiency and streamline operations. It supports over 5,000 merchants and works through third-party logistics providers to offer delivery services.

In its efforts to scale, Duhqa has successfully raised $2.6 million in seed funding from investors, including CrossFund, Roselake Ventures, and Mo Angels. The funding will be used to expand Duhqa's merchant network and develop its market presence across East Africa. With an asset-light strategy, Duhqa plans to triple its team size to address gaps in African distribution logistics.

5. Ohospital Cloud Limited

Year Founded: 2021
HQ: Nairobi
Size: 1-50
Founders: Daniel Kimani

Ohospital Cloud Limited is a Kenyan startup focused on leveraging technology to solve health problems and innovate in the healthcare sector. As a digital telehealth platform, Ohospital offers various services to increase accessibility and efficiency in healthcare delivery. Its primary features include online consultations, remote patient monitoring, and access to medical advice and prescriptions through a user-friendly interface.

Ohospital Cloud Limited offers comprehensive telehealth services that bridge the gap between patients and healthcare providers, particularly in areas with limited access to medical facilities. By utilizing cloud technology, Ohospital ensures that patients receive timely medical attention. In 2021, it secured $105K from TechBridgeHub and 6 other investors to improve its platform and reach every corner of Africa.

6. WorkPay

Year Founded: 2017
HQ: Nairobi
Size: 51-200
Founders: Paul Kimani

Workpay is among the few Kenyan startups in the HR and payroll field. It provides cloud-based solutions for small and medium-sized businesses across Africa, focusing on HR management, payroll, compliance, and employee benefits. Workpay's platform helps companies streamline their payroll processes by eliminating inefficiencies and reducing costs associated with cash payments. It also supports time tracking, salary disbursement in local currencies, and tax payments, making it a comprehensive tool for managing employee compensation.

In recent funding rounds, Workpay secured $14.1 million in pre-Series A funding to scale its operations across Africa further. This investment, led by Launch Africa Ventures and other notable investors, aims to expand Workpay's reach from its current presence in over 20 countries to nearly 40. The funds will be used to establish compliance partnerships in new regions.

7. Neural Labs Africa Ltd

Year Founded: 2021
HQ: Nairobi
Size: 1-50
Founders: Tom Kinyanjui Njoroge and Paul Ndirangu Mwaura

Neural Labs Africa is one of the Kenyan startups focused on transforming healthcare diagnosis using artificial intelligence. It leverages cutting-edge technology to address the challenges of inadequate healthcare resources and African disease burdens. Neural Labs' AI-driven medical imaging solution can screen X-rays for tuberculosis, pneumonia, and lung cancer indicators in real-time. This innovative approach is particularly beneficial in marginalized communities where access to healthcare services is often limited.

One of the standout features of Neural Labs Africa is its ability to process up to 1000 X-rays per minute, which is significantly faster than human capabilities. This efficiency is essential for improving patient care and outcomes in regions heavily impacted by respiratory and cancerous diseases. Neural Labs Africa continues to make strides, supported by programs like Villgro Africa's AI4H, which provides financial backing and strategic guidance. It has raised $10.1 million to expand its reach in different countries across Africa.

8. Lami

Year Founded: 2019
HQ: Nairobi
Size: 51-200
Founders: Jihan Abass

Lami Technologies is an insurtech startup. It aims to make insurance more accessible and affordable. Recognizing the low insurance penetration in Kenya due to complex processes and a lack of transparency, Lami developed a digital platform that simplifies purchasing insurance policies. By partnering with leading insurance providers, Lami offers a variety of insurance products, including motor, health, property, and travel insurance. Its user-friendly interface allows customers to compare options, customize policies, and complete purchases seamlessly.

Regarding expansion and innovation, Lami has introduced several unique insurance solutions. For instance, it developed a per-trip transit insurance product in collaboration with the logistics startup Sendy, providing affordable coverage for goods in transit. Lami also partnered with Kwara to offer insurance products to Savings and Credit Co-Operative Societies members. Lami raised $5.6 million in a seed round extension in 2022, led by Harlem Capital, to expand its offerings and enter new markets like Egypt and Nigeria.

9. GoBEBA

Year Founded: 2019
HQ: Nairobi
Size: 1-50
Founders: Lesley Mbogo and Peter Ndiang'ui

GoBEBA is among the Kenyan startups that aim to transform Africa's utility supply chain to support quick urban growth. GoBEBA is an online distributor of bulky refillable essentials like water and cooking gas. It leverages a technology stack to manage a network of micro-fulfillment hubs. GoBEBA addresses a significant infrastructure gap in African cities where essential utilities are often distributed in bulky portable devices rather than through reliable pipelines​​.

In 2024, GoBEBA secured $275,000 in funding from Madica, which it plans to use to expand into four additional Kenyan cities before venturing into East and Central Africa. The funding will also support the automation of its logistics network through AI and robotics. With revenue growing five-fold and a high rate of repeat customers, GoBEBA is well-positioned to scale its operations and impact across the continent​.

10. KOKO Networks

Year Founded: 2015
HQ: Nairobi
Size: 200+
Founders: Greg Murray

KOKO Networks, a Kenyan cleantech startup, focuses on providing sustainable bioethanol cooking fuel as an alternative to charcoal and kerosene in urban areas. Through a network of high-tech KOKO Fuel ATMs in thousands of corner stores across Kenya, KOKO allows households to access clean, affordable cooking fuel. This significantly reduces indoor air pollution and the health risks associated with traditional solid fuels.

In 2024, KOKO Networks received an undisclosed investment from Rand Merchant Bank (RMB) to expand its bioethanol fuel model across Africa. This funding aims to accelerate KOKO's mission of replacing deforestation-based charcoal with cleaner alternatives, generating carbon credits, and providing household subsidies. Currently serving 1.1 million households in Kenya, KOKO plans to use the new investment to scale its operations and continue addressing the critical issue of indoor air pollution across the continent.

11. Checkups

Year Founded: 2018
HQ: Nairobi
Size: 51-200
Founders: Moka Lantum and Renee Ngamau

CheckUps is a Kenyan health tech startup offering comprehensive healthcare services through a tech-enabled platform. Its services include online consultations, urgent care, lab tests, medication procurement, and delivery. CheckUps also provides subscription plans like CLASSICare, SMARTCare, and DELUXECare, which offer various levels of medical consultations, essential lab tests, and medication discounts. It operates multiple branches in Kenya and South Sudan.

Regarding funding, CheckUps has been selected as one of the 29 African startups to receive support from the Investing in Innovation Africa (i3) initiative, backed by the Bill & Melinda Gates Foundation. This program provides startups a $50,000 grant, investment readiness support, and opportunities to connect with industry leaders and potential customers. This funding will help CheckUps expand its reach across Kenya and beyond.

12. Ilara Health

Year Founded: 2018
HQ: Nairobi
Size: 200+
Founders: Maximilian Mancini, Emilian Popa, and Sameer Afzal Farooqi

Ilara Health is another Kenyan startup in the health tech industry. It provides affordable diagnostic services to rural and underserved areas. Leveraging artificial intelligence-powered devices, Ilara Health partners with local clinics to equip them with low-cost diagnostic tools such as portable ultrasound machines. This innovative approach ensures that even the most remote communities can access quality healthcare services.

In 2024, Ilara Health secured $4.2 million in funding through a pre-Series A round, which included equity investments from DOB Equity, Philips Foundation, AAIC Investment, and others, as well as debt investments from Alphamundi and Kiva Capital. This brings the startup's total funding to $9.8 million. The new funds will be used to scale operations in East Africa. Ilara Health aims to expand its B2B health services, allowing uninsured workers to access care through a network of partner clinics for a fixed monthly fee.

FAQs

What are the strongest industries in Kenya?

Kenya's strongest industries include agriculture, technology, real estate, and manufacturing. Agriculture remains a cornerstone, employing a significant portion of the population and contributing massively to the GDP. The technology sector, often dubbed "Silicon Savannah," is growing with innovations and Kenyan startups, particularly in Nairobi. Real estate continues to thrive due to rapid urbanization and population growth. Manufacturing is also a key industry for Kenyan startups, supported by government incentives to boost local production​.

What is the average investment in the startup industry in Kenya?

In 2023, the startup sector in Kenya attracted significant investments, averaging around $500 million annually from various venture capitalists and private investors. This reflects a growing confidence in the Kenyan startup ecosystem​.

How many startups are there in Kenya?

Kenya is home to over 300 active startups. These startups span various industries, including fintech, health tech, agritech, and e-commerce. Nairobi, the capital city, is the primary hub for these entrepreneurial ventures, providing a conducive environment for innovation and business growth​.

How fast is the startup industry growing in Kenya?

In early 2024, Kenya's startup sector achieved a remarkable 17% increase in new investments, surpassing Nigeria and Egypt to become Africa's leading destination for startup financing.