Kenyan Startups Soar as Nigeria Lags in Africa’s July 2025 Funding Round
The African startup landscape witnessed a surge in venture capital in July 2025, with a staggering $550 million raised across the continent. However, the distribution of this funding highlighted a significant shift in the ecosystem. While 61 startups secured investment, Kenyan ventures took the lead, leaving their Nigerian counterparts lagging behind. This disparity raises questions about the factors influencing investment trends within the African tech space.
Kenya’s Clean Energy Giants Lead the Charge
A significant portion of the July funding was channeled into Kenya’s clean energy sector, particularly through substantial investments in two key players. The solar energy company Sun King secured a massive $156 million through a securitisation deal. This local currency transaction, equivalent to KES 20.1 billion, will facilitate the expansion of affordable solar energy access to approximately 1.4 million low-income households and businesses. The initiative is designed to displace reliance on more expensive and environmentally harmful fuels such as kerosene and diesel. The securitisation, structured by Citi in partnership with Stanbic Bank Kenya Ltd and backed by both local and international financial institutions, marks the largest of its kind in Sub-Saharan Africa outside of South Africa. Another player, d.light, also secured $80 million.
The success of Kenyan startups highlights the country’s growing prominence in the African technology landscape and underscores the importance of targeted investments in sectors like renewable energy.
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