Nairobi, Kenya – September 8, 2025: Kenya has climbed five places to 58th globally in the latest Global Startup Ecosystem Index 2025, cementing its position as one of the leading startup hubs in Africa.
This marks the first time Kenya has broken into the top 60 countries worldwide for business and startup friendliness.
The index, which covers 118 countries and 1,473 cities, measures startup activity, ecosystem quality, and overall business environment.
Kenya’s Position in Africa
South Africa ranked highest in Africa at 53rd globally.
Kenya came in second at 58th.
Egypt placed third (65th globally).
Nigeria followed at 66th.
Rwanda rounded out the top five at 96th.
Kenya also posted the fastest annual ecosystem growth among Africa’s top five startup nations, recording +33.5 percent growth.
According to the report, Kenya’s steady improvement in rankings reflects:
Increased investment flows into Nairobi’s startup ecosystem, often referred to as the “Silicon Savannah.”
Strong government support for technology and innovation, including tax incentives and funding initiatives.
Expansion of digital infrastructure such as subsea internet cables and the government’s Digital Economy Blueprint.
Growth in fintech, agritech, and creative industries that are attracting global investors.
While East Africa overall recorded the slowest business growth among African sub-regions, Kenya stood out as an exception, demonstrating resilience and investor confidence despite global economic headwinds.
Analysts say Kenya’s rise strengthens its image as a preferred investment destination, especially with Nairobi serving as a hub for multinational tech companies and homegrown startups alike.
Experts predict Kenya could climb even higher in future rankings if it continues to address challenges such as high operating costs, regulatory hurdles, and limited access to venture capital for small startups.
With continued reforms and stronger partnerships, Kenya is positioning itself not only as a regional leader but also as a serious global player in the startup ecosystem.
