 Why is Kenya experiencing an influx of tech startup? Hello there, welcome. In today's video, I will be explaining to you why Kenya is experiencing an influx of tech startups. Have you ever wondered which African nation offers the best internet and technological infrastructure? Or which nation offers the most hospitable environment for ICT investment in Africa? I'll be revealing to you why Kenya is that country after conducting a thorough investigation and research. I'm James, your host. You are watching Africa Reloaded. Over the years, Kenya has seen an increase in the number of tech firms. Findings and a matri capital study of Kenya's investment environment show that there are several opportunities for investors in the $8.7 billion retail sector of the nation. As always, I will appreciate a like on this video before you continue to watch. Today's emergence of technology-driven businesses in Africa is a sign of how the business ecosystem is changing. However, this shift is not the sole factor in the rapid growth of the tech industry in Africa. Other factors, including Africa's young and expanding population, rising internet usage, and evidence of the use of contemporary technologies to enhance access to health care, quality education, financial services, and energy have all contributed to the current tech-friendly environment. This is due in part to Kenya's vibrant internet culture, high mobile phone adoption rate, and youthful population. According to surveys, the nation has a mobile penetration rate of over 100 percent, 90 percent of the population has access to the internet, and there are a variety of B2C e-commerce merchants, which reduces company costs. Thanks to a number of advantages, including an increasing number of interested foreign investors, a sizable population with access to technology, and an expanding number of startup support groups working in the ecosystem, Kenya's startup ecosystem is a prominent hub for entrepreneurship on the continent. In the post-colonial era, Kenya gained its independence and developed a capitalist economy. However, this is not where the success of Kenyan startup starts. A number of issues contributed to the relative stagnation of the economy, including corruption and a lack of technical know-how. This persisted until the 1990s, when significant economic changes and anti-corruption measures were implemented. In 2006, Kenya's first underwater internet cable was installed. A Pan-African internet service provider with the Nairobi headquarters, Africa Online, was founded as a result of the explosion in connection. From this point on, Kenya's connectivity context was established. Thus, between January 2015 and November 2022, 242 IT companies raised $1.28 million. They only raised $506.6 million last year, more than double the $291.9 million they had raised the year before, and setting a new record for the ecosystem as a whole. According to the survey, which mapped 47 nations, 58% of Kenyan business owners are present in Nairobi and have been expanding to other parts of the country. Although 53% of them are headquartered in Kenya, there is a strong desire to expand to other East African and West African countries. 91% of the businesses that responded to the survey made an effort to raise money from investors. Only about 6% of startups have put their own money to use, while 3% did not respond. Among the 33 firms that attempted to generate funds, 97% were able to do so through several means such as loans, investments, and grants. Only two startups were acquired or merged with another firm. According to reports, 97% of startups found it difficult to raise capital, while only 3% found it simple. The majority of startups, 65%, are interested in investments and return for a stake in the firm, while 15% are interested in a combination of loans and investments and others, 12% seek on loans. A few, 8% of the population, are seeking grants or safe notes. FinTech is seen as the most populated sub-sector of the Kenyan startup space in terms of levels of activity with 93 firms, making up 30.2% of the country's ventures, securing its ability to solve fundamental problems at a time tech solutions are received well and quickly adopted at. As of last year, at least 308 tech startups were in operation across Kenya, employing more than 11,000 people. Kenya has the potential of being the next big foot in tech. However, doing business in Kenya is a bigger adventure than scaling the peak of Mount Kilimanjaro, swimming with great white sharks, or sleeping beside an active volcano. There is a mountain of reasons why this is so. Ranging from finance to government policies etc. yet, the country strives to thrive against all odds. The influx of venture capital funding into the country is also a strong reason for the growth of the startup scene. As a startup hub, Kenya's development began by trying two main challenges, emergency notification and access to money. Tech startups and businesses in Kenya benefit from mobile phone connectivity, which is being leveraged to solve problems from payment to service delivery and more. Kenya is a very productive market for innovative concepts and businesses thanks to its sizable private sector, diverse economy and economically empowered and entrepreneurial customer base. In Kenya, funding for IT startups reached $574.8 million in 2018, nearly doubling from $292 million in 2021. With 17.2% of the total fresh funding reported on the continent, the 91 startups in the nation received the third largest capital inflow in Africa during the review period. According to the data, the average investment size in the nation was $6.3 million in 2018, an increase from $3.4 million in 2021. The frequency of rounds in Kenya above $1 million also paints a positive image, and it has increased significantly over the years as public trust in the nation's ecosystem soars. According to the research, there were 49 such rounds in 2022, an increase from 35 the year before. After indigenous digital businesses found success, the Kenyan government has also intervened to support the expansion of the sector. The government's Vision 2030 plan was revealed in 2013. To support the innovation environment, it includes plans to build a massive tech metropolis called Kanza branded savanna silicon for $14.5 billion. With a presidential decree directing that 30% of public bids be allocated for businesses founded by youth under 25, women entrepreneurs or individuals with disabilities, their commitment to supporting startups has even been extended legislatively. Such a criterion will increase the likelihood that young firms will get government contracts. The Kenyan market is now growing in a wide range of areas, many of them riding on the growth of the mobile market. With a gradually maturing infrastructure, we can easily see the Kenyan startup ecosystem expanding in other African countries. Thanks for watching till the end. Please remember to comment, like, share and subscribe to Africa Reloaded. Also remember to turn on your notification icon to get alerts of newly posted videos.