Kenya's capital recognised as a startup-friendly city
Nairobi, the capital of Kenya, has ascended 24 spots to rank as the 113th most favoured city globally for startup investments, a significant rise from its previous position of 137th in 2023.
The most recent Global Startup Ecosystem Index report by StartupBlink reveals that Nairobi has advanced one position among its African counterparts, now ranking third after surpassing South Africa's Cape Town.
According to the Global Startup Ecosystem Index report, “Besides public sector efforts, Nairobi is home to regional offices of global tech giants like Google, Microsoft, Samsung, and Intel, which makes the city attractive to tech startups. Also, the presence of accelerators like Antler and Pangea Accelerator contributes to the startup culture. The Association of Startup and SMEs Enablers of Kenya (ASSEK) actively fosters relationships between stakeholders within the ecosystem.”
Nairobi's sustained appeal for startup ventures is credited to factors such as proactive government engagement which has led to the creation of technological centres like Konza Technopolis, and the commitment to implement the Startup Act—a legislative framework designed to foster an environment of innovation and entrepreneurial spirit.
Nairobi's progress in the startup sector coincides with a period marked by widespread media coverage of the challenges faced by entrepreneurs, with reports of startups shutting down and others reducing their operations, largely attributing these setbacks to an extended period of scarce funding.
Marking another notable achievement for Kenya, Kisumu has debuted in the global top 1,000 list, securing the 985th spot. On the contrary, Mombasa has experienced a decline, exiting the prestigious group and following its previous year's downward trend by falling 46 places to the 937th rank.
