Kenya’s capital city, Nairobi, has significantly improved its ranking as one of the most preferred cities for startup investments, climbing 24 places to position 113 globally, up from 137th last year. According to the latest Global Startup Ecosystem Index report by StartupBlink, Nairobi also moved up one spot among African peers to rank third, surpassing South Africa’s Cape Town.
This improved ranking reflects Nairobi’s sustained progress, having risen from 163rd place in 2022. Factors contributing to Nairobi’s attractiveness for startups include active public sector involvement with initiatives like the Konza Technopolis and the proposed Startup Act, which fosters a culture of innovation and entrepreneurship.
Additionally, Nairobi hosts regional offices of global tech giants such as Google, Microsoft, Samsung, and Intel, making it a magnet for tech startups. The presence of accelerators like Antler and Pangea Accelerator further enhances the city’s startup ecosystem, as noted in the report.
“The Association of Startup and SMEs Enablers of Kenya (ASSEK) actively fosters relationships within the ecosystem,” the report emphasized, highlighting the collaborative efforts supporting Nairobi’s startup community.
Mobile payments solution M-Pesa has also played a pivotal role in cementing Nairobi’s status as an innovative tech hub, contributing to the city’s tech-friendly environment despite Kenya’s relatively smaller population compared to other African economies.
Nairobi’s rise in the global startup ranking comes amid challenges in the entrepreneurial landscape, with reports of startup closures and funding difficulties. Despite these challenges, Nairobi’s startup scene continues to thrive, supported by a resilient ecosystem and growing investor interest.
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