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Kenya Enters Global Top 60 in Startup Ecosystem Rankings, Registers Highest Growth Rate Among Peers

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NAIROBI, Kenya— Kenya has advanced five positions to rank 58th in the Global Startup Ecosystem Index 2025, marking its first appearance among the world’s top 60 startup ecosystems.

The data, published by StartupBlink, shows that Kenya recorded a growth rate exceeding 30 percent, the highest among countries placed between 51st and 61st.

Within Africa, Kenya has returned to the second position after three consecutive years in third place.

The report also indicates that Kenya holds the strongest ecosystem in Eastern Africa, with a total score six times higher than Uganda, the region’s second-ranked country.

Nairobi remains the country’s primary startup hub, climbing six places to 107th globally.

The capital continues to outpace all other cities in Eastern Africa, including Victoria, Seychelles.

Nairobi’s ecosystem is nearly fifty times larger than Mombasa’s, which itself re-entered the global top 1,000 this year at position 916 following a growth rate of over 100 percent.

Kisumu, however, dropped out of the top 1,000 due to slower ecosystem expansion.

According to StartupBlink’s findings, Kenya’s growth rate within the African continent, exceeding 33 percent, is the highest among the top five African countries in the index, surpassing larger economies such as Nigeria and Egypt.

“In Africa, Kenya is demonstrating what’s possible when innovation, policy, and partnerships align,” read the report in part.

“Nairobi is inching closer to the global top 100, and that’s a sign of sustained progress.”

The development of Kenya’s startup ecosystem has occurred within a complex policy environment.

Notable government interventions include the Kenya National Innovation Agency’s efforts to coordinate innovation activities and the establishment of digital platforms such as the Kenya Innovation Bridge.

Legislative measures, including the Kenya Startup Bill, have introduced regulatory frameworks that require startups to allocate a fixed percentage of their budget to research and development and maintain full Kenyan ownership to qualify for official recognition.

These conditions have prompted debate among stakeholders regarding their long-term implications.

International actors, such as the UK’s Foreign, Commonwealth and Development Office, continue to collaborate with local institutions to support innovation capacity and skills development.

The introduction of a digital nomad visa in 2024, requiring applicants to earn at least US$55,000 (Sh7.2 million) annually, has also aimed to attract skilled foreign professionals to Kenya’s urban centers.

Despite progress, structural challenges persist, including inadequate infrastructure, limited access to funding, and a shortage of advanced mentorship programs.

Nairobi remains the focal point of the country’s tech activity, hosting offices of major global firms such as Microsoft, Intel, Google, and Samsung, along with accelerator programs like Antler and Pangea.

Phidel Kizito
Phidel Kizito
Phidel Kizito Odhiambo is a seasoned journalist and communications professional with over five years’ experience in storytelling across Kenya’s top newsrooms, including Capital FM, Standard Media, and Jedca Media. Skilled in digital journalism, strategic communications, and multimedia production, he excels at crafting impactful narratives on an array of beats, including business, tech, and sustainability.

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