Kenya’s capital, Nairobi, has climbed 24 places to rank 113th globally in the latest Global Startup Ecosystem Index report by StartupBlink, up from 137th last year. It also rose to third place among African cities, surpassing Cape Town. This improvement highlights Nairobi’s continued growth from its 163rd position in 2022. Contributing factors include active public sector involvement, the presence of global tech giants, and local accelerators fostering a robust startup culture.
Meanwhile, Kisumu made its debut in the global top 1,000, ranking 985th, while Mombasa fell to 937th. Despite Nairobi’s rise, local startups face challenges, with many folding or scaling back due to a prolonged funding drought. E-commerce firm Copia recently went under administration, highlighting the struggles in the Kenyan startup scene. Analysis indicates that besides funding issues, factors such as business model viability and unpredictable taxation regimes are also impacting startups.
