Startups in Kenya are one of the fastest-growing types of companies in the country.
The number of startups increases on a daily basis. In 2020, there was a 31.1% jump in startups from 2019 in Kenya.
The good news, however, is that these startups need funding in order to survive in the market and sustain their goals.
If you are looking for an investment opportunity in East Africa, Kenya is one of your best options.
Kenya has the largest economy in East Africa and it also has the most stable political system in the continent.
The Kenyan government welcomes investors across all sectors and in collaboration with private sectors and other partners, they are willing to help businesses thrive.
Between the years 2015 and 2020, Kenya alone represents up to 27% of the continent’s investment sector.
It has never been easier to start and source funding for startups in Kenya. Many investors know that it is right for them and their investment goals.
Startups in Kenya
A startup is a business started with the intent to grow large beyond the solo founder. It is usually funded by investors who may or may not become stakeholders depending on them. There is a slight difference between entrepreneurship and startups.
While entrepreneurship refers to all businesses including businesses that have no intention to be registered, startups are businesses that hope to grow into a limited liability.
According to a 2020 report by Disrupt Africa, startups in Kenya received almost $150m in 2019 as funding, making it the largest amount of funding ever achieved by a single country.
There is no doubt that startups are massively supported in Kenya.
Top Startups in Kenya
From agri-tech to energy, Kenya is dominated by diverse startup firms providing customers with needed solutions.
Below are some of the top startups in Kenya. These startups get funded by investors and they are solving real problems for their customers.
1. M-Kopa
M-Kopa believes that everyone should have the power to achieve progress in their lives, so they make financing accessible to everyone.
M-Kopa is a financing platform that offers millions of customers access to life-enhancing products and services.
Founded in 2012, M-Kopa has become one of the top startups in Kenya. Since its founding, they have built one of the world’s most advanced connected asset financing platforms.
They have helped millions of their customers to access solar lighting, energy-efficient televisions, smartphones, and more with almost $400million in financing.
2. Twiga Foods
Twiga Foods is a B2B technology-enabled food distribution platform. They found a gap between food and market security and they are bridging it.
Through their platform, farmers and other food manufacturers can connect with trusted and fair markets or food vendors.
Since its founding in 2014, Twiga foods have delivered fresh foods to over 35,000 vendors.
Twiga foods source for quality fresh and processed foods from farmers and other food manufacturers to vendors and everyone.
These foods range in different varieties.
3. Africa’s talking
With Africa’s talking, businesses can now create their customer care service easily. This will help them to connect with their customers.
Africa’s talking is a platform that provides communication solutions across Africa helping developers bring their ideas to life using powerful SMS, USSD, voice airtime, payment APIs.
4. Copia Global
Copia Global found out that online retail stores and e-commerce services cannot reach the majority of low-income earners in Africa. They decided to do something.
Built-in 2013, Copia global serves humanity by bringing Africans high-quality goods at low prices regardless of their earnings, level of education, access to technology, or location.
They leverage on digitally-enabled agents that meet consumers anywhere they are and order as well deliver for the consumer.
5. PAYGO Energy
Paygo energy is a startup aiming to tackle the problem of unclean cooking like cooking over an open fire.
Founded in 2015, Paygo energy’s mission is to support new markets for LPG through digital innovation. They believe bringing digital innovation and technologies to the LPG industry can expand access to clean cooking for many households across the continent.
They hope to help promote clean cooking for the next billion.
6. Sendy
This is a delivery solution for businesses.
Sendy transport helps businesses move goods safely from point A to B, all from your mobile.
They make sure that the goods are protected and safe. Also, they provide their customers the opportunity to track the driver.
Since 2015, they have offered various businesses the opportunity to transport goods across the country.
And this is done in 24 hours.
These are six top startups in Kenya. However, if you want to invest in startups, here’s how to successfully do that.
How to invest successfully in startups in Kenya
Learn about the market
You cannot start investing unless you understand what works in the market and what does not. It is important to learn about the startup market.
One of the world’s biggest investors Warren Buffet said, ‘never invest in a business you cannot understand’
Your understanding is very important. Take time to learn and understand the startup market and the business you plan to invest in.
Set up a strategy
You need a strategy. One that helps you win in the market. Your winning and survival in the investing market strongly depend on your strategy and your strategy begins with your investment goals.
- What do you plan to achieve?
You need to know what you plan to achieve and how long you think it will take you to achieve that goal. You need to think about things like that before going ahead.
- How do you plan to achieve that?
It isn’t enough to know your investment goals, you need to map out a plan to achieve that goal. Where do you plan to invest and for how long? These are some of the plans that will help you win in investment.
Know your competitors
Your competitors are there to teach you a lot from afar. Just by knowing and watching them, you can learn a lot from your competitors.
When I say competitors, I mean other companies in the same industry as the company you invest in. They are probably doing something right that the company you invest in needs to take up in order to increase profit and by increasing your investment returns. subsequently, increase your investment returns.
Be in it for long term
A big mistake you want to avoid is going into investing just for the money and for the short term. It would frustrate you.
The growth of a startup will depend on how long it can stay or survive and as an investor, you need to be patient and plan to be in it for the long term.
Think and create an investment strategy for the long term. There is no doubt that this is one of the most important things to do if you want to become a successful investor.
However, while you have decided to be in it for the long term, you also need to make mistakes and be willing to learn.
Make mistakes
If you’re in it for the long term, then you must be willing to make mistakes.
Mistakes are not something you should avoid because they help you grow and become better.
Be open to making mistakes but most importantly you need to learn from every mistake that you make.
Be open to learning
You must have heard of the saying, “the day you stop learning is the day you die”. Well, it is true for everything including investing.
Read books about investment, watch videos.
However, be a wide learner. Don’t just learn about investment, read books about life and other things you’re interested in.
Be a student of life.
Speaking of learning, here’s an opportunity to learn more about investing in Kenya.
Learning more about investing in Kenya
Kenya is one of the fastest-growing countries in East Africa and one thing that has contributed heavily to the economy is INVESTMENT.
The government is aware of this and they create a favorable condition for investors.
However, there are laws guiding investment in the country and these laws apply differently to different sectors.
For instance, investing in startups in Kenya is different from investing in gold.
Ready to learn more about investing? SHIKANA GROUP will provide you with all legal knowledge about investing. The best part is that they have everything you need about investing in East Africa.
With the Shikana group, investing in East Africa has never been easier.
Conclusion
Startups in Kenya are really growing fast and this is because funding is easier, more people are investing in startups.
This is a promising sector of the economy and as an investor, it is one you can invest in.
The startup sector in Kenya is a huge one. It has firms in diverse industries so it is important for you to learn as much about the sector and make sure you take time to study what works and what does not work.
You don’t want to be the kind of investor that puts money into a business you know nothing about.
I suggest you check out the Shikana group for everything investing in Kenya today.
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