Kenya Takes Lead in Fintech Funding Across Africa in H1 2023

Kenya emerges top

In the first half of 2023, Kenya has positioned itself as one of the leading countries in Africa, securing a substantial share of fintech funding.


According to data from the Afridigest Fintech Transactions Database, Kenya has successfully attracted a significant sum of $280 million (Ksh40.47 billion) through 13 significant deals during this period.

While Kenya holds a prominent position, Egypt and South Africa have taken the lead with funding amounts of $402 million (Ksh58.1 billion) and $304 million (Ksh43.94 billion), achieved through seven and eleven deals, respectively.

Kenya emerges top in Fintech in Africa
Photo: Nairobi Garage

Several other nations, including Senegal, Uganda, and Cameroon, have also joined the fintech funding landscape, each securing $0.1 (Ksh14.45 million) million in funding from one, two, and three deals, respectively.

The distribution of funding types reveals an interesting trend. While equity funding for African fintechs in H1 2023 has experienced a decline of 40% compared to the previous year, debt funding has surged by over 80%.

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This shift can be attributed largely to two significant deals: MNT-Halan’s issuance of a $140 million (Ksh20.23 billion) securitized bond and M-Kopa’s successful raising of $200 million (Ksh28.91 billion) in debt financing. Excluding these substantial deals, there still remains a slight year-on-year increase in H1 debt funding.

In terms of specific sectors within fintech, the Banking/Lending vertical has taken the lead, capturing a significant portion of funding. This vertical accounts for $0.66 (Ksh95.40) of every equity dollar raised and an impressive $0.96 (Ksh138.77) of every dollar raised through debt financing in H1.

Notable players in the Banking/Lending sector include lending platforms like MNT-Halan and Lulalend, digital banks such as TymeBank and FairMoney, and asset financing platforms like M-Kopa and Planet42.

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Aside from equity and debt financing, there has also been a slight increase in fintech mergers and acquisitions (M&A) activity throughout Africa. The first half of the year witnessed a total of 15 announced M&A deals, compared to 13 in the corresponding period of the previous year. This highlights the evolving dynamics within the African fintech landscape, showcasing a drive toward growth and innovation.


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