Government invests in startups funding to drive growth

The Kenyan government has intensified its investment in startup funding as part of its strategy to drive economic growth and digital transformation. Officials announced that new financing programs will provide early-stage ventures with access to capital, mentorship, and investor networks. This initiative is designed to help startups overcome funding barriers, scale their operations, and contribute to Kenya’s broader innovation agenda.
The move builds on the Kenya Startup Bill (2025), which established a legal framework to support entrepreneurs through tax incentives and streamlined registration. It also complements the Digital Economy Blueprint 2025, which prioritizes innovation as a driver of sustainable development. By combining government support with private sector investment, Kenya is creating a robust ecosystem where startups can thrive and expand regionally.
Recent successes highlight the impact of funding in Kenya’s startup ecosystem. In June 2025, startups raised more than $92 million, including landmark deals such as BURN Manufacturing’s $80 million investment from the Trade and Development Bank Group (TDB) to expand clean cooking solutions across Africa, and Peach Cars’ $11 million Series A round to grow its online vehicle marketplace. These achievements demonstrate how funding enables startups to innovate locally while scaling across the continent.