In 2024, the Kenyan startup ecosystem experienced a rollercoaster of fortunes, with some startups shutting down or downsizing, while others secured millions in funding, made strategic acquisitions, and expanded their operations across borders. According to TechCabal's review of the year, the mixed fortunes of Kenyan startups reflect the challenges and opportunities in the region's tech landscape.

On the downside, two startups, Copia and iProcure, entered administration in the first half of 2024 after failing to secure new funding. Copia's co-founder, Tracey Turner, announced plans to launch a new entity, but this has yet to materialize. The shutdowns highlight the difficulties faced by startups in Kenya, where access to funding and regulatory hurdles can be significant obstacles.

However, other startups bucked the trend, with M-KOPA, a PAYGO fintech, navigating a complex tax claim in Kenya and increasing its investment with an expanded phone assembly facility in Nairobi and an e-bike plant. Mayur Patel, M-KOPA Fintech MD, reported that the company has been profitable for several quarters, demonstrating its resilience in the face of challenges.

In a significant development, 2024 saw the first two startup acquisitions in Kenya, with Kopo Kopo and Hisa welcoming new owners. Craydel, a Kenyan ed-tech, also expanded to Zimbabwe, marking its fourth market on the continent. These deals underscore the growing interest in Kenyan startups and their potential for growth and innovation.

Looking ahead to 2025, TechCabal has identified several startups to watch, including M-KOPA, which has reached five million customers across five African markets, making it the first Kenyan financial services startup to achieve such impressive customer numbers. KopoKopo, acquired by Nigeria's Moniepoint, is another startup to watch, as it extends its presence to East Africa's biggest economy.

Craydel, which has built a unified university applications platform for learners in Africa, is also expected to make significant strides in 2025. Hisa, acquired by Rise, a Nigerian fintech, is poised to grow its customer base and introduce new products, while Sukhiba, a Kenyan social commerce startup, has raised $1.5 million in funding, demonstrating the potential for growth in the sector.

The mixed fortunes of Kenyan startups in 2024 serve as a reminder of the challenges and opportunities in the region's tech landscape. As the ecosystem continues to evolve, it will be important to monitor the progress of these startups and others, as they navigate the complexities of the Kenyan market and strive to make a lasting impact.